‘Major issues’ merit suspensions for 44 state-owned enterprises
Suspensions mark the beginning of China's third batch of 'intense' mixed ownership reform slated for fourth quarter
As of Monday, a total of 56 state-owned enterprises in China were in a suspended state, of which 12 were in temporary suspension and 44 suspended due to “major issues,” China Securities Journal reported.
According to statistics, there are 1,054 state-owned enterprises currently in China’s A-share market. The suspensions, said the report, mark the beginning of China’s third batch of mixed ownership reform.
“The current mixed ownership reform has entered the implementation stage,” an unnamed state-owned enterprise expert said.
“Taking into account the timetable issued by the National Development and Reform Commission, mixed ownership reform will mainly take place in the fourth quarter of this year, and in the next two months. The intensity of the reform will also be greatly enhanced.”
Minsheng Securities researcher Jin Dalai, believes that the main aim of these reforms is to enhance business efficiency through the reorganization of assets.
“Since the beginning of 2017, state-owned enterprises have purchased private entities more frequently, and by the end of May, we can start to see that oil and gas reform programs are the main focus.”
Researcher Liu Xingguo said that in addition to including key areas such as oil and gas, the military may also take part in the third batch of mixed ownership reform.
SASAC Director Xiao Yaqing, in response to the question, said that the launch date and details of the third batch of mixed ownership reform is “currently under study.”