Date
19 September 2017
CNBM will remain under the control of its state-owned parent despite the expected entry of some strategic investors, says chairman Song Zhiping. Photo: HKEJ
CNBM will remain under the control of its state-owned parent despite the expected entry of some strategic investors, says chairman Song Zhiping. Photo: HKEJ

CNBM to remain state-controlled despite reform

China National Building Materials Group Corp. (CNBM) will remain the controlling shareholder of China National Building Material Co. Ltd. (03323.HK) although the listed firm will join a pilot state-owned enterprises (SOE) revamp program, the Hong Kong Economic Journal reported Monday.

The listed company will introduce two to three strategic investors, the report said, citing chairman Song Zhiping.

The investors will be invited to nominate directors to the board to ensure better corporate governance and improved transparency, according to Song.

The company is among the first six SOEs in the pilot scheme which the State-owned Assets Supervision and Administration Commission has proposed as part of efforts to direct private capital to industries that have long been dominated by the state.

Only industries that have a bearing on national interests and social security will remain in the control of SOEs, said Song.

Other industries deemed to be competitive will have to be reformed with a hybrid shareholding structure of both private and state capital, he added.

The scheme also requires the parent company to put in place a system that will enhance practices related to hiring of high-rank staff, performance evaluation and remuneration management.

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VW/JP/RC

Freelance journalist

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