|Shenzhen and Guangdong set in motion new round of reforms at state firms
Another round of reform involving state-owned enterprise is underway in Shanghai and Guangdong, media reports said.
Shanghai took the first step toward restructuring, when two major SOEs announced a merger agreement, Shanghai Securities News reported today.
Shanghai East Best International Group has acquired the total equity of Shanghai Lansheng Corporation. Both companies were previously held by the Shanghai State-owned Assets Supervision and Administration Commission.
The long-awaited merger raised the curtain on a new round of SOE reform in Shanghai, Xinhua reports.
According to financial reports, Lansheng Corp. and East Best Group reported incomes of 1.33 billion yuan and 68.4 billion yuan in 2012, respectively.
Meanwhile, Guangzhou, has set up a new system of integrated supervision for state-owned assets, the newspaper reported Wednesday. Previous systems featured separate regulations from local supervision commissions and the departments of finance, publicity and transportation.
Peng Peng of Guangzhou's SOE Supervision and Administration Commission told the newspaper the city was examining Singapore's Temasek style of investment management.
Guangdong announced in 2011 it would securitize more than 60 percent of its assets by the end of 2015, but with only two years remaining, the securitization rate remains at just 20 percent, worth about 4 trillion yuan, according to the report.
The resumption of initial public offerings could be one way for Guangdong to meet its target. IPOs in China went on hold in October of last year, with 700 firms left in the IPO pipeline.
A decision published on November 15 following the Third Plenary Session of the 18th Communist Party of China Central Committee urged improved management of state-owned assets, and said that qualified SOEs will be reorganized to establish state-owned assets.