Shenzhen has launched an ambitious plan to invite foreign investors to take stakes in its five best state-owned enterprises (SOEs) to help meet the challenges after China's entry into the World Trade Organisation.
Foreign investors will be invited to bid for stakes in Shenzhen Energy Group, with 25 per cent on offer, 45 per cent of Shenzhen Water (Group), 40 per cent of Shenzhen Gas Group and 45 per cent of Shenzhen Public Transportation (Group), Shenzhen mayor Yu Youjun said yesterday.
The city would also sell 70 per cent of its largest food company Shenzhen Food General but intended to split the interest into 30 per cent and 40 per cent stakes held by two foreign or private companies, Mr Yu said.
The move is believed to make Shenzhen one of the first mainland cities to use international tenders to sell off SOE stakes. Shenzhen started early on SOE reforms but had lagged behind other cities recently, Mr Yu said.
Foreign investors have been eyeing well-positioned state assets but China had been wary of introducing foreign players in key economic sectors for fear of losing control.
'The controlling stakes will remain in the hands of the Chinese side as they are key sectors of the economy,' Mr Yu said.