CHINA'S state-owned building enterprises are dragging their feet on their transformation into shareholding companies for fear of the problems the move may bring.
Many are expected to go bankrupt in the process while others will fire many workers.
Efforts to separate the 94,000 construction companies from the state have been made since the second half of last year with disappointing results.
Hu Zhongping, assistant director of the Ministry of Construction's international relations department, said yesterday: 'Not one state-owned construction firm has been successfully transformed into a limited company or a shareholding firm since the Ministry of Construction pursued the policy posed by the central government.' She was speaking after a seminar in Hong Kong, organised by Adsale Exhibition Services, on the development of the building and construction industries in China.
Ms Hu said the state-owned companies were facing difficulties during the transformation and were delaying the process.
'For example, many people will be fired after the restructuring,' she said.
