This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Will Chinese Investors March with the People's Liberation Army?

Stocks in this article: CICHF

BEIJING (TheStreet) -- China's armed forces are looking for a few good investors.

The government says it plans to recruit more private investment to finance air, land and sea defense suppliers through a project that combines "civilian-military integration" and a "structural readjustment" of the country's military industrial complex.

A framework for the fund-raising campaign is expected to be worked out this coming weekend at a conference of high-level government and business leaders in the backwater city of Zaozhuang, about 350 miles north of Shanghai, according to state-run media.

Headline attendees are expected to include Shenzhen Stock Exchange chief Song Liping, China Aviation Industry Vice Chairman Zhuang Xin, AVIC Capital General Manager Yang Shengjun,and Shandong Province Governor Guo Shuqing, according to China's Bloomberg-like financial data provider Wind Information.

Guo's participation suggests a strong government commitment to more market funding of state companies that equip the People's Liberation Army. Before transferring to Shandong, he led a 2011-2013 stock market reform campaign as head of the China Securities and Exchange Commission. He has also served as chairman of China Construction Bank (CICHF), director of the State Administration of Foreign Exchange, and vice governor of the central bank.

The government plans to raise "quality private capital" through the nation's capital markets to finance publicly listed but government-controlled military suppliers of all stripes, the China Securities Journal reported. Funds could be used to help these companies branch into or expand their current positions in markets for civilian goods and services, at home and abroad.

"Asset-backed securitization is one of the priorities" of a military reform movement that started in 2011, the report said. The movement got a fresh jolt in March when President Xi Jinping highlighted his support in a speech. Xi also serves as chairman of the Central Military Commission and general secretary of the Communist Party.

Also in March, the government said it would boost national defense spending 12.2% in 2014 year-on-year to about $132 billion.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs