BEIJING, Jan. 22 (Xinhua) -- Signs show that China will quicken its pace in the mixed ownership reform of the state-owned enterprises (SOEs) in 2019, the Xinhua-run Economic Information Daily reported on Tuesday.
On January 11, Greenland Municipal Investment under Greenland Holdings Corporation Limited (600606.SH) successfully acquired a 70-percent stake in Henan Province Highway Engineering Bureau Group Co., Ltd for about 800 million yuan, making it the first case of successful mixed ownership reform on a subsidiary of a SOE under Henan provincial government.
According to an equity transfer agreement, eventually, Greenland, Henan Transport Investment Group, and the management and staff of the Henan Province Highway Engineering Bureau Group will take 51-percent, 30-percent and 19-percent stakes in the company, respectively.
China will increase efforts in the mixed ownership reform on the SOEs this year. On the basis of the 50 SOEs selected in three batches to conduct the pilot reform, it will introduce policies to further deepen the mixed ownership reform of the SOEs and accelerate the launch of pilot reform in more than 100 SOEs in the fourth batch, said Lian Weiliang, deputy director of the National Development and Reform Commission (NDRC) at a recent press conference.
In addition, the centrally administrated SOEs are expected to accelerate strategic reorganization this year to better allocate resources.
For example, Sinomach Automobile (600335.SH) announced late November last year that it intended to issue shares and raise about 3.107 billion yuan to buy the 100-percent stake held by China National Machinery Industry Corporation Ltd (Sinomach) in the Automotive Engineering Corporation.
After the transaction, Sinomach Automobile will realize its expansion in the field of automotive engineering, promote the extension of the industrial chain and the integration of resources, and facilitate its upgrading into an international automobile group.
In 2019, China will steadily promote the strategic restructuring of central enterprises in the fields of equipment manufacturing, coal, electric power, communications, and chemicals and continuously advance the integration of resources in the fields of coal, steel, offshore equipment, and environmental protection. A variety of cooperation models such as mergers and acquisitions (M&As), cross-shareholdings, financial investments, and strategic alliances will emerge, said Li Jin, head of the China Enterprise Research Institute. (Edited by Hu Pingchao, hupingchao@xinhua.org)
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