State-owned Enterprises

Cofco gets approval to begin restructuring

Cofco was selected in July 2014 as one of six central government-controlled state-owned enterprise groups to pilot mixed-ownership reforms. Photo: SCMP Pictures

The country's biggest agribusiness firm China National Cereals, Oils and Foodstuffs Corp (Cofco) has received government approval to move forward with its restructuring plans, state media reported yesterday.

Friday, 13 February, 2015, 10:37pm

SOE chiefs could be next target of anti-graft campaign

SOE chiefs could be next target of anti-graft campaign

State media have started to lambast the luxurious lives of senior executives at state-owned enterprises - an indication that President Xi will make them the next target of his anti-graft campaign.

17 Sep 2014 - 6:53pm 1 comment

Bosses at China's state-owned enterprises face pay cuts of up to 50pc

A state-owned steel plant in Tangshan. Photo: Reuters

Officials in charge of China's state-owned enterprises face pay cuts of up to 50 per cent and new job descriptions under a reform plan approved by President Xi Jinping.

21 Aug 2014 - 9:08am 7 comments

Reform of state-owned enterprises crucial to improve quality of Chinese economy

State control in state-owned enterprises must be gradually diluted by ushering in private investors. Photo: Reuters

A new round of state-owned enterprise reforms is gaining traction. On July 15, the State-owned Assets Supervision and Administration Commission (Sasac) unveiled four reforms to be implemented in six central-government-controlled state enterprises.

14 Aug 2014 - 3:18am 1 comment

After Citic, who’s next among Chinese state firms to take their mega deals to Hong Kong?

The lobby of Peace Hotel, owned by Jin Jiang International, which once considered listing through its Hong Kong unit. Photo: Bloomberg

Investors are keenly watching for the next state-owned enterprise to follow in the wake of Citic’s ground-breaking restructuring, in which Citic Pacific will mount a US$36 billion reverse takeover of its parent.

3 Apr 2014 - 4:57am

Does the yuan matter?

There's too much fuss about the yuan, when other economic reforms are more urgent.

The mainland's currency policy is not worth the attention it is getting. It is not at all important compared with other market distortions in the Chinese economy, and it is not even very important in how China affects the world economy.

25 Mar 2014 - 2:13am 6 comments

Sinopec stake sale signals move to privatise state-owned enterprises

Sinopec's stake sale could be a harbinger for further privatisation of China's SOEs. Photo: Reuters

The mainland's decision to sell a stake in a subsidiary of Sinopec signals more privatisation of its bloated state-owned sector will take place soon, with plans likely to be discussed at this week's parliamentary session, officials and experts said.

5 Mar 2014 - 1:12am

Why China cannot have a 'Lehman moment'

State backing has it covered

People are going to be discussing the flaws of Chinese finance for many years. Here's a helpful guide: as soon as you see or hear "China's Lehman moment" used seriously, stop paying attention.

25 Feb 2014 - 5:23am 4 comments

Beijing denies report private investors could buy 15 per cent of state-owned firms

Profits at SOEs rose 10.5 per cent in the year's first three quarters, according to the Ministry of Finance. Photo: Reuters

Top Chinese regulators on Monday rushed to pour cold water over an official media report that the government would allow private investors to buy up to 15 per cent stakes in state-owned enterprises. 

11 Nov 2013 - 6:29pm

Lending adds increasingly less to Chinese GDP, pressuring Premier Li

Observers say the mainland needs to channel more financing to its private enterprises, which are more profitable than their state-owned counterparts. Photo: Reuters

The government's broadest measure of credit rose 58 per cent to a record 6.16 trillion yuan (HK$7.8 trillion) in the January-March period, when gross domestic product gained 7.7 per cent, compared with 8.1 per cent a year earlier. Each US$1 in credit firepower added the equivalent of 17 US cents in GDP, down from 29 cents last year and 83 cents in 2007, when global money markets began to freeze.

31 May 2013 - 3:49am

Danger signals as China's state sector leverage reaches new heights

Danger signals as China's state sector leverage reaches new heights

If there is one lesson everyone learned from the 2008 crisis, it is that a rapid rise in leverage can signal the risk of an approaching financial crash.

9 May 2013 - 4:39am 2 comments

China's ailing economy needs a dose of Thatcherism with Chinese characteristics

Chinese leader Deng Xiaoping, left, meets with then British prime Minister Margaret Thatcher in Beijing in this September 24, 1982 file photo. Photo: AP

As the world mourned the passing of former British prime minister Margaret Thatcher, remembered her belief in small government, free enterprise and monetarism, and her contribution to world prosperity, we should look at what today's China can learn from her legacy.

29 Apr 2013 - 1:07pm 1 comment

Shipping chief locks eyes on the top - not on bottom line

"As long as China Cosco is fully understood by party central and the State Council, it's enough for me" - Wei Jiafu, chairman, China Cosco, April 8

Finally, someone has spoken the truth. There can be no better person than Wei to uncover the lie of so-called state enterprise reform.

13 Apr 2013 - 4:51am

Boao forum panel hears calls for level playing field for private firms

Professor Zhang Weiying, an economist at Peking University, speaks at the Boao Forum. Photo: Xinhua

The central government should intervene less in the private sector and concentrate on offering a level playing field for state-owned and private enterprises to maintain growth and investment, said participants at a panel discussion on the mainland economy at the Boao Forum for Asia in Hainan.

7 Apr 2013 - 7:14am 1 comment

Gree tastes pain of excess

Xi Jinping has sounded a need to crack down on corruption and lavish government spending. Photo: Xinhua

Gree, a major home appliance maker, is casting an interesting spotlight on a new kind of risk faced by major state-owned firms due to a central government campaign against excessive spending and corruption.

4 Mar 2013 - 11:08am