China Said to Near Unveiling of Plan to Revamp State-Owned FirmsBloomberg News
China is close to unveiling the government’s broad plans to reorganize its state-run industries, people familiar with the matter said.
The proposal, delayed after China’s recent stock-market crash diverted the government’s attention, is expected this month and may be announced as soon as this week, the people said, asking not to be identified because the plan hasn’t been made public. Once the broad framework is announced, relevant ministries will follow up with detailed plans, the people said.
The State-owned Assets Supervision and Administration Commission, the agency overseeing the government’s companies, didn’t immediately respond to a faxed query for comment. According to people familiar with the matter said in March that the government is planning to strip Sasac of its shareholdings and hand them to state asset-management firms, who would either merge or manage companies to make them more competitive.
The shake-up is poised to affect many government-run companies, which are perceived to be so rife with corruption and poorly run that Sanford C. Bernstein & Co. estimates that they trade at discounts totaling $2 trillion. Shares related to Aviation Industry Corp. of China and COSCO Group recently rallied amid mounting optimism that reorganization of state-owned enterprises is approaching.
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