(Yicai) July 5 -- Two Chinese government-run financial institutions have established a special fund worth CNY30 billion (USD4.1 billion) to help the country’s state-owned enterprises make better use of their fixed and land assets through investment as well as mergers and acquisitions.

The fund was set up in Beijing today by China Chengtong Holdings Group, a government investment vehicle under the State-owned Assets Supervision and Administration Commission, and bad debt manager China Orient Asset Management. Both firms will be responsible for the management of the fund, Yicai learned.

The special fund will help integrate resources and provide capital-related support through direct investment as well as investment by sub-funds to revitalize assets with growth potential and idle land worth developing, the SASAC said.

Since the beginning of the year, improving the use of SOEs' assets has been one of the SASAC’s main tasks. In January, it established a fund worth CNY40 billion (USD5.5 billion) to invest in SOE infrastructure with great growth potential, such as idle land lots, patented technologies as well as other types of operating assets.

At the time, China Reform invested CNY13 billion (USD1.7 billion) while non-performing asset managers China Orient, China Cinda Asset Management and China Great Wall Asset Management injected CNY9 billion (USD1.2 billion), respectively.

Editors: Dou Shicong, Kim Taylor