China established a $52.5-billion fund for state-owned enterprises restructuring
Almaty. September 27. Silkroadnews – China has established a $52.5-billion fund to finance the reform and restructuring of the state-owned enterprises (SOE), China Daily reports.
The initiator of the fund is a public corporation China Chengtong Holdings Group operating in assets management. The initial capital in the amount of 131 billion yuan ($19.7 billion) is provided by ten companies, among them China Mobile, Sinopec and China Railway Rolling Stock Corporation.
Fund's operation will be carried out under the control and management of the State-owned Assets Supervision and Administration Commission (SASAC). The funds will be used to finance «the reforms on the supply side» to ensure the sustainable economic growth with the state-owned enterprises (SOE) modernization.
«Among SOEs controlled by the central government, some have excess capacity while others are suffering from a severe lack of capacity», said Xiao Yaqing, head of SASAC.
He added that the Fund should help to raise the production of high-tech products.
China's industry experiences problems caused by overcapacity in some industries and economy's general slowdown. Over the recent years China observed a slowdown in industrial production. In 2011 this index made 13.9%, and by the end of last year – 6.1% only.
