Beijing to start selling off state-owned enterprises

PUBLISHED : Monday, 13 October, 1997, 12:00am
UPDATED : Monday, 13 October, 1997, 12:00am

Beijing city will start selling off its state-owned enterprises en masse next month, according to the agent responsible for the auction.

Forty medium and small state-owned enterprises would be put up for sale, China News Service quoted an auction house in Beijing as saying yesterday.

The enterprises, covering electronics, chemicals, food processing and tourism, have combined assets estimated at 400 million yuan (HK$372 million). The sale will include their land but not their liabilities and staff, indicating that the new owners will not be responsible for old debts or compensating workers.

Many cities have started to sell off inefficient state-owned enterprises since the Communist Party concluded its 15th Congress last month, when party leaders decided the state would promote shareholding and allow more enterprises to go bankrupt.

Last week, auctioneers in Guangzhou sold a bankrupt camera factory.