Economy

Mergers reduce China's central SOEs to 123

(Xinhua)
Updated: 2010-08-06 10:05

BEIJING - The number of China's centrally-administered state-owned enterprises (SOEs) was reduced to 123, from 125, after two mergers were approved by the State Council, the country's Cabinet, the state-assets manager said Thursday.

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China National Real Estate Development Group Corporation was merged into China Communications Construction Company Limited (CCGRP) and became a wholly-owned subsidiary of CCGRP, while Shanghai Ship and Shipping Research Institute became a wholly-owned subsidiary of China Shipping (Group) Company following the merger.

No additional details concerning management changes and the value of the companies were released by the government agency, the State-Assets Supervision and Administration Commission (SASAC).?Wang Zhiyong, an analyst with Bohai Securities, predicted more mergers and acquisitions would occur in China's central SOEs involved in nonferrous metal and coal, as well as in commerce.

SASAC chief Li Rongrong said in late July that the Chinese government sought to reduce the number of SOEs to less than 100 while focusing on creating 30-50 large groups with strong international competitiveness by the end of 2010.

However, he said SOEs should retain their absolute dominance in important industries such as electric power and the power grid, petroleum and chemicals, telecommunications, coal, aviation, and shipping.