Chinese province to sell stakes in local state-owned enterprises

[SHANGHAI] One of China's struggling rustbelt provinces is seeking to sell stakes in some state-owned enterprises (SOEs) with US$60 billion in combined assets as the central government's push to overhaul SOEs spreads to municipalities.

The government in Liaoning, northeastern China, is inviting bids for stakes in seven companies, according to a statement on the Shenyang United Assets and Equity Exchange on Aug 31.

A representative at the exchange said SOEs in other provinces, private firms and investment funds have expressed interest, but declined to comment on specifics.

The proceeds would help the province replenish its coffers and provide relief for a region plagued by overcapacity and unemployment because of its reliance on mining and steel-making.

The move also comes amid a broader effort by President Xi Jinping to overhaul the country's bloated SOEs to revive an economy that's growing at its slowest pace in a quarter century.

In total, these SOEs had 401.1 billion yuan (S$81.61 billion) in assets and 159.5 billion yuan in net assets as of last year, according to the Shenyang exchange.

The China Daily reported earlier on the stake sales.

BLOOMBERG