Substantial steps have been taken in the reform and reorganization of municipal state-owned investment & financing companies. According to the information from State-owned Assets Supervision & Administration Commission (SASAC) of Yichang City on March 15th, 4 investment holding groups have been formed quietly through the integration of 7 investment & financing companies, indicating that the original governmental investment & financing platform is being transformed into the entity industry, which will function mainly in investment, financing and self-improvement.
　　Yiling State-owned Assets Management Company and Yiling Construction, Investment & Development Company were established in 1999 and 2004, which specialized in capital operation and investment & financing. In the beginning of 2013, other 5 companies, i.e. High-tech Investment Development Limited, Finance & Economic Investment Development Limited, Land & Resource Development Limited, Real Estate Investment Development Limited and Huaxin Transportation Construction Investment Development Limited were also established. In the last 7 years, these 7 companies have boosted Yichang economy with an average annual financing of over RMB 15 billion (about $2.42 billion).
　　Yichang Municipal Committee of the Communist Party of China and Yichang Municipal Government decided to integrate these 7 investment & financing companies and establish Yichang City Construction Investment Holding Group, Yichang State-owned Capital Investment Holding Group, Yichang High-tech Industry Investment Holding Group, and Yichang Transportation & Tourism Industry Investment Holding Group, hoping to build a debt financing mechanism with government bond, separate government financing function from financing companies and solve the problems (such as small asset size, low financing capacity etc.) of investment & financing companies.