STATE holdings in a large number of Chinese government companies being turned into shareholding units next year could be down to only 20 per cent, according to Chinese economists.
The conversion of ''enterprises wholly owned by the people'' into shareholding or joint-stock concerns is a key recommendation of a series of economic meetings being held in Beijing.
Foreign and private capital would be allowed unprecedented levels of participation in the new entities.
Chinese economists involved in the drafting of market reforms recently endorsed by the leadership said Beijing was prepared to accept the ''quasi-privatisation'' of a number of ''pilot enterprises'' and sectors.
The ongoing conferences on planning and reforming the economic structure have approved the restructuring of at least 100 large-scale and medium-sized state enterprises in 1994.
Officials speaking at the conferences have indicated state enterprises ''with the requisite qualifications'' could team up with foreign capital as well as private units and collectives to form limited-liability and shareholding companies.
The officials hinted that this was the only way to reform state companies, up to two-thirds of which are losing money, by pushing them towards the marketplace.
