Date
17 September 2019
Private and foreign firms should 'actively participate' in reform and development of Chinese central state enterprises, says SACAC chief Xiao Yaqing. Photo: Bloomberg
Private and foreign firms should 'actively participate' in reform and development of Chinese central state enterprises, says SACAC chief Xiao Yaqing. Photo: Bloomberg

China aims to lure foreign investment into large SOEs

China will seek to attract foreign investment into its larger state-owned enterprises (SOEs), which are undergoing reforms to make them more competitive, Reuters reports, citing the nation’s state asset regulator.

Private and foreign firms should “actively participate in reform and development of central enterprises, and jointly explore ways of deep cooperation including mixed-ownership”, Xiao Yaqing, chairman of the State-Owned Assets Supervision and Administration Commission (SASAC), was quoted as saying on the regulator’s website on Sunday.

The SASAC will also support investment by state giants in private and foreign firms, Xiao said, without giving details.

China began a new round of reforms in 2016 aimed at streamlining its SOEs by introducing private capital, curbing overcapacity, shutting down “zombie” subsidiaries and restructuring assets.

Amid the initiative, authorities have been promoting “mixed-ownership” reforms aimed at introducing private capital and management methods into giant central government SOEs.

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