China will unveil Tuesday a list of state-owned enterprises (SOEs) that will initiate reforms in their shareholding structure and move toward mixed ownership, Securities Daily reported Monday, citing an unnamed source.
Authorities have said earlier that SOE shareholding reform is an important part of the nation’s economic restructuring. Some giants like China National Petroleum Corp. and China Petroleum and Chemical Corp have carried out their own plans to diversify their ownership, inviting social funds to cooperate in some business segments.
China National Building Material Group, the parent of China National Building Material Company Ltd. (03323.HK), will be among the firms on the upcoming list to further pilot mixed-ownership structure, the report said.
Other key reforms include the setting up of a state capital investment platform, board system and disciplinary inspection work group. Each reform will pick up two SOEs for a trial, according to the report.
COFCO and State Development and Investment Corp (SDIC) will become the first batch of SOEs to join a trial scheme under which they will establish their own state capital investment vehicles, it said.
SOEs form the backbone of China’s economic growth. However, their monopoly in many businesses has shut out smaller market entities and has led to low efficiency and poor service.
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