(Yicai Global) Aug. 18 -- China Shipbuilding Industry Co. [SHA:601989], one of the country's largest shipbuilding conglomerates, has brought in eight investors to raise CNY21.9 billion (USD3.3 billion) for two subsidiaries, Dalian Shipbuilding Industry Co. and Wuchang Shipbuilding Industry Group Co., the state-owned enterprise said in a press briefing on Aug. 16.

China Cinda Asset Management Co. [HKG:1359], one of China's biggest asset managers, contributed CNY5.034 billion (USD750 million) and China Orient Asset Management Co. put up CNY2 billion through debt-for-equity swaps.

An additional six companies, including China State-Owned Capital Venture Capital Fund Co., China SOE Structure Adjustment Fund Co., China Life Insurance Group Co. [SHA:601628], Huabao Investment Co., Shenzhen China Merchants Ping An Asset Management Co. and Guohua Military and Civilian Integration of Industrial Development Fund Ltd. contributed CNY14.83 billion in cash. 

After the capital increase, the investors will not involve themselves in the operation of the two companies.

Dalian Shipbuilding and Wuchang Shipbuilding are manufacturers of ships and marine equipment that have recently suffered high asset-liability ratios, high corporate financial costs and high capital costs.

The transaction will improve capital strength, lower the leverage ratio, and reduce financial costs for the two subsidiaries, thereby enhancing operations and profitability, China Shipbuilding said.