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Chinese economy won't collapse - but SOE reform doubtful

Senior management at state-owned enterprises have obvious vested interests in their units not being merged with one another.

China's state-owned enterprises in overcapacity sectors have begun expanding into "emerging industry" areas and in the service sector, but it is questionable how quickly (if at all) existing staff can be retrained for these new industries.

IF, AS some bears claim, China is in the midst of economic collapse, the country is hiding it well. We come away from a week in China feeling, if not optimistic, at least reassured that things are not so much worse than the data is telling us.

Corporates, analysts and officials were...