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China Plans Closer Oversight of $304 Billion in State Company Funds

  • New company to oversee funds of state sector’s financing units
  • SOEs would retain control over funds, people familiar say
Photographer: SeongJoon Cho/Bloomberg

China will create a centralized financing company to oversee some $304 billion of funds held by the country’s state-owned enterprises’ finance units, people familiar with the matter said, allowing the government closer supervision of SOEs’ borrowing and investments.

The plan, approved by the State Council or Cabinet, will increase the government’s ability to supervise the non-financial central SOE finance companies’ investments, giving the entity a fuller picture of how these companies are using funds, according to the people, who asked not to be named because the plans have not been made public.