18 April 2019

Military industry reform could gather pace, paper says

The Ministry of National Defense and the relevant authorities are working on policies that will relax the restrictions on military industries for public listings, the China Securities Journal reported Thursday. It is believed that apart from a small number of arms firms that must remain 100 percent state-owned, the others in the industry could seek stock market listings in the future, it said. The paper quoted unidentified analysts as saying that the level of support pledged to the arms industry by top leaders at the Communist Party plenum this month was stronger than expected. Recent approvals granted to Hafei Aviation Industry Co. Ltd. (600038.CN), China Shipbuilding Industry Corp. (601989.CN) and Xi’an Aero-engine Corporation Ltd. (600893.CN) for asset restructuring by the State Administration of Science, Technology and Industry for National Defense were breakthrough signs, the analysts added.

– Contact HKEJ at [email protected]



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