State-backed China Shipbuilding to raise $1.4 billion for naval buildup

(Reuters) – State-backed China Shipbuilding Industry (601989.SS) plans to raise up to $1.4 billion through a private share sale to buy assets used for building warships, the first time Beijing is tapping the capital market to fund its military expansion.

The move comes as China creates its own military-industrial complex, with the private sector seen taking a key role, as the country gains a new sense of military assertiveness and deals with a growing budget to develop modern equipment including aircraft carriers and drones.