SASAC Halves Number of Central SOEs as Authorities Speed Up Asset Restructuring
Yicai Global
/SOURCE : Yicai
SASAC Halves Number of Central SOEs as Authorities Speed Up Asset Restructuring

(Yicai Global) July 25 -- The number of state-owned enterprises regulated by the State-owned Assets Supervision and Administration Commission of the State Council has been reduced to 105 from 196 as SOEs suffering from overcapacity undergo asset restructuring.

The number of central SOEs is expected to fall to below 100 this year, and will eventually drop to around 50, China Securities Co. believes.

This new stage in the reform of SOEs will focus on the merging of firms suffering from overcapacity in the steel, iron, coal and building material sectors.

Mixed ownership systems, including the merging and reorganization of SOEs, employee stock ownership plans and attracting social capital, are being promoted, according to a report released by GF Securities Co. SOE reform is meant to help drive the structural transformation of the macro economy.

So far, four central SOEs have cooperated to build a coal asset management platform and the State Development & Investment Corp. is promoting the transformation of a coal company into a mineral resource development corporation, in a bid to abandon the coal business within five years.

Central SOEs in all sectors also plan to establish state-owned capital investment companies. This will also help central SOEs achieve asset securitization and ultimately complete backdoor listings.

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