China Huadian Group aims for complete listing of assets
China Huadian Group, one of the big five state-backed power generators, plans to ultimately inject all of its assets into its listed companies as part of reform in state enterprises, but analysts said this would take several years.
China Huadian Group, one of the big five state-backed power generators, plans to ultimately inject all of its assets into its listed companies as part of reform in state enterprises, but analysts said this would take several years.
This was because assets to be sold to the listed units would be subject to profitability hurdles and cumbersome government and shareholders' approval procedures, the analysts said.
"Listing all the assets is a straightforward way to achieve Beijing's goal of state enterprise reform and introducing private investors as shareholders, but it will take a long time for all the assets to be listed," CIMB Securities utilities analyst Keith Li said.
Huadian is expected to finalise a proposal this year on asset restructuring and the establishment of specialised management of its coal-mining operations, the China Securities Journal quoted an unnamed company official as saying.
Listing all the assets is a way to achieve … state enterprise reform
Huadian said in a reform blueprint it would come up with a roadmap to achieve complete listing of its assets, attract strategic investors and increase cooperation and co-investment with private firms.