China plans to raise at least 100 billion yuan (about HK$93.1 billion) through share issues at home and abroad next year to fund the reform of state-owned enterprises.
The target comes as growth in state-sector losses this year has started to stabilise, Xinhua news agency reported yesterday.
Wang Zhongyu, Minister of State Economic and Trade Commission, yesterday said Beijing would push ahead with reform next year. He forecast more mergers and bankruptcies, Xinhua reported.
In the first nine months of this year, 389 state-owned enterprises, with combined assets of 14.8 billion yuan, were declared bankrupt, said Mr Wang, who is charge of state-sector reform.
During the same period, 623 state firms, with assets of nearly 50 billion yuan, were merged into other firms with 1.13 million workers diverted to other sectors.
Mr Wang said the central government would set aside 40 billion yuan to write off bad debts next year and would try to raise 100 billion yuan from stock markets at home and abroad.
Beijing this year set aside 30 billion yuan to write off bad debts and raised 130 billion yuan from the stock markets. Mr Wang said the government would encourage listing of key state firms and would also encourage listed firms to take over state firms that were in difficulties. Beijing would try to offer incentives to foreign investors to take over or buy into the state firms.