Vanke in talks to buy into SOEs' property arms
China Vanke, the mainland’s biggest developer by sales revenue, is in talks with some state-owned enterprises to buy into their real estate arms as the country speeds up the reform of its SOEs, chief executive Yu Liang said on Wednesday.
SOE reform is key to China’s efforts to improve the efficiency of the economy as a whole, and Beijing has already taken a few milestone steps, such as the decision last month to inject all the assets of property-to-financial state-owned conglomerate Citic into its Hong Kong-listed unit, Citic Pacific.
Also last month, PetroChina and Sinopec, the mainland’s duopoly oil and gas giants, announced they would seek capital investment from the private sector.
“China is encouraging SOEs to sell their businesses in competitive industries to private investors, and we find ourselves at a vantage point in such mixed-ownership reform,” Yu told a property forum in Hong Kong.
“We are in talks with a few institutions about this, and we are willing to take big steps in terms of acquisitions or equity stake investment.”