A ceremony marking the establishment of the China Aviation Industry Fund and its cooperation with Tianjin municipal government was held in Tianjin on July 6, during which a series of investment and cooperation agreements was signed.

The fund, which plans to raise 20 billion yuan, is China's first aviation industry fund and will be the largest industry fund in the country.

The fund is set up by the Aviation Industry Corporation of China (AVIC) and China Construction Bank as China's first investment fund for the aviation industry and related fields. It will be managed by a company composed of subsidiaries of AVIC and the China Construction Bank.

The fund, which has raised 1 billion yuan and selected investment targets, plans to raise up to 5 billion yuan in the first phase, and 1.5 billion to 2.5 billion yuan in the second phase. Its long-term objective is to raise 20 billion yuan.

An AVIC insider said international experience shows that channeling private funds into national defense research and the development of dual-use technologies, and encouraging venture investments in the defense industry are effective measures for the rapid growth of the defense industry and can lead to great business success.