China, as part of a wider drive into progressive industries to boost its GDP growth, plans to combine over 40 entities to work on huge $22 billion plane-engine project. According to the report, the entities have merged assets worth approximately 110 billion yuan.
The government of China along with companies like Aviation Industry Corp. would invest 35 billion yuan as part of the plan, Bloomberg said citing people with knowledge of the proposal. China is more anxious to grow its personal engine to power its airplanes and it is also eager to drive the nation's economy from labour concentrated work into refined sectors.
China leaders believe aerospace sector to assist in driving the country into a progressive economy alongside of Germany and Japan, according to the reference in the Made in China 2025 blueprint.
The Commercial Aircraft Corp., is growing the C919 single-aisle jet and the testing of the flight is anticipated to take place in the current year. Bloomberg said that CFM International, which is a joint venture of GE Aviation and a unit of Safran SA of France, would provide a LEAP engine version for the first C919s.
According to Bloomberg, stocks of Avic Aero-Engine Controls Co. ended up 7.7% in Shenzhen on Tuesday trading session. Meanwhile, shares of Avic Aviation Engine Corp. closed up 6.7% in Shanghai and stocks of AviChina Industry & Technology Co., soar up 7.2% in Hong Kong.
The new organisation will comprise nearly all the assets associated to Chinese aerospace engines, Bloomberg said citing people not willing to be identified. Last June, the government of China combined two prominent companies that specializes in rail-equipment and also announced a plan to restructure two leading shipping groups.
China's GDP rose by 6.9 percent in 2015, compared to 7.3 percent reported in the previous year, The New York Times said quoting the official data released on Tuesday. The numbers match analysts' estimates for quarterly development of 6.8 percent, according to a Reuter's survey. The reports also said that the Industrial production in December rose 5.9% from the previous year. Retail sales also rose 11.1% from last year but decreased from 11.3% in November.
"This is a good number, we've known for the last three years that the Chinese authorities are slowing down the economy. This economy is going to slow down," Jahangir Aziz, leader of emerging Asia economic research at JPMorgan, said CNBC's Street Signs.
Wang Baoan, the leader of statistics bureau, said reports that the nation would prompt its economic improvements in the present year. He also added that growth in the online shopping sector will continue to be robust.
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