Xi’s Pitch to Investors Hinges on Revitalizing State-Owned Firms

  • Major state companies account for almost half of market value
  • Reforms that boost transparency, efficiency are vital: abrdn
WATCH: Bloomberg has learned that Chinese regulators met with global investors as the government steps up its bid to boost market confidence. John Liu reports.Source: Bloomberg
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Beijing is on a mission to revamp its state-owned enterprises, and show the world that investing in President Xi Jinping’s China can reward everyone from domestic savers to skeptical money managers.

Officials have kicked off a drive in recent months to boost the valuations of SOEs, a massive cohort that has contributed little to gains in the nation’s stock indexes over the years. These firms are in every corner of the economy — ranging from banking to ports and the steel industry — and the major entities account for almost half of the overall market capitalization, according to Goldman Sachs Group Inc.