Source:
https://scmp.com/business/china-business/article/1458855/citic-deal-sets-scene-mainland-reform-state-firmsChina Business
Citic deal sets scene for mainland reform of state firms
Shares in HK flagship soar on the asset injection agreement but a lack of details on pricing and regulatory issues presents risks for investors
Citic Pacific may need special exemption from Beijing for the 225 billion yuan asset injection deal to go ahead. Photo: Reuters
Shares in Citic Pacific surged after the company unveiled a plan to buy almost all of its parent's assets not already under the Hong Kong-listed unit, potentially marking a breakthrough for Beijing's deeper reform for state enterprises, but a lack of details on pricing and regulatory issues presents risks for investors.
Some analysts are concerned whether the deal will have to follow mainland regulations that state assets must not be sold at less than book value.