Privatization Chinese model

Privatization Chinese model

China is considering private investors increase holdings in state-owned enterprises . If implemented , this policy would mark a moderate change in the government's embrace the private sector in sectors that had been occupied Beijing .


Bloomberg News
" We welcome private investors to invest in state-owned enterprises . There are many ways to do it , "said an official of the Commission of Administration and the State -owned Assets Supervision or SASAC . This statement is a response to the China Daily newspaper reported on Monday . It said Beijing will allow private investors pocketed more than 15 % shares of state companies .

Through its official microblog account on Monday , SASAC denies reports of plans to allow private investment to 15 % . The agency said only that the state enterprise reform plan will be announced soon .

SASAC oversees more than 100 China's largest state-owned companies . Source of SASAC was revealed that the amount allowed for private shares has not been decided . He also explained that the policy would not apply in any sector .

News about this privatization appears to coincide with a rally Chinese Communist Party officials met in Beijing . In a meeting called as the Third Plenum , they try mapping the Bamboo Curtain country 's economy , the world's second largest economy .

Reforms in state-owned enterprises seems to be one of the main topics of the meeting . Possible changes are presumably being discussed were related to the decline in part to the limitations of private players in the industry which is dominated by state enterprises . Another reform that seems under discussion is the amount of income that must be returned to a state government company .

Several months before the party meeting , China's leaders continue to discuss these important reforms draft document . Some draft policy was leaked to test the market reaction .

Chinese government research institutes , Development Research Center , published a blueprint for liberal reform as thick as 200 pages . Cargo of all kinds, ranging from the liberalization of interest rates to the sale of land by farmers rights .

However , reform of state enterprises is one of the sensitive issues . Therefore , the size and the amount of revenue the company makes Chinese SOEs have great political influence . Even so , the economic slowdown in China made ​​a number of economists urged the government to review the inefficient state enterprises .

SASAC stated last month that the reform of state-owned companies will widen access to the private investor in a market dominated by the Communist Party .