Beijing is to float more large-scale state enterprises on the stock market, a top level conference has decided.
Speeding up the reform of enterprises by converting them into shareholding companies was a key issue at top-level meeting which ended this week at the resort of Beidaihe.
A source close to the conclave said more large-scale state-owned enterprises would be listed on the nation's two stock exchanges in the coming year.
He said the idea was to use the people's vast savings to resuscitate the enterprises, which have piled up unprecedented losses this year.
'After acquiring stakes in state companies, ordinary citizens will become their supervisors and quality controllers.' the source said. 'Efficiency should go up very soon.' When the yuan becomes convertible in a few years, foreign companies will be allowed to buy more shares in Chinese concerns.
Foreign capital will particularly be sought for the modernisation of old plants.
However, the leadership has yet to decide on the minimum percentage of shares in a company that must remain in the hands of the central Government.