Minor role for private firms in China's push to reform its SOEs
Hong Kong
CHINA'S latest push to revive its bloated state-owned sector is set to pick up pace this year, with bankers and investors expecting possible spin-offs and asset sales to follow a key Communist Party Congress in October.
But the effort is likely to only involve a limited role for private money, even as Beijing has been promoting it as crucial for reforming state-owned enterprises (SOEs), according to sources.
Beijing would likely lean on cash-rich SOEs such as China Life Insurance and Citic Group Corporation to bail out the largest of the struggling companies, the sources said.
They cited China Life stepping in to help China Unicom raise US$12 billion last month.
A limited role for private capital would raise questions about the depth of any overhaul of the SOEs. China hopes to speed up the reforms in order to meet ambitious economic growth targets and manage it…
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