Prov­inces draw­ing up plans for State as­set man­age­ment

China Daily (Hong Kong) - - BUSINESS DIGEST - By WEI TIAN in Shang­hai weitian@chi­nadaily.com.cn

Guang­dong and Shang­hai are tak­ing the lead in draft­ing a mar­ket-ori­ented re­form plan for State-owned as­sets man­age­ment, which is ex­pected to serve as a ref­er­ence for other prov­inces with largescale na­tional as­sets.

Guang­dong is look­ing to se­cu­ri­tize up to 60 per­cent of its State-owned as­sets by the end of 2015, from a cur­rent level of 20 per­cent, leav­ing only two years for lo­cal State-as­set watch­dogs to reach the goal.

Lyu Yesh­eng, head of the Guang­dong State- owned As­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mit­tee, said the fo­cus for the prov­ince’s 4 tril­lion yuan ($655 bil­lion) worth of na­tional as­sets will be on op­ti­miz­ing al­lo­ca­tion, shift­ing away from as­set man­age­ment and to­ward cap­i­tal man­age­ment.

Lo­cal au­thor­i­ties are work­ing out the de­tails.

To this end, the South China prov­ince will be learn­ing from Sin­ga­pore’s ex­pe­ri­ence in set­ting up a Te­masek-like govern­ment- led in­vest­ment man­age­ment com­pany, Peng Peng, in­de­pen­dent di­rec­tor for the lo­cal na­tional as­sets su­per­vi­sor, was quoted as say­ing by the Shang­hai Se­cu­ri­ties News.

Prepa­ra­tion for the com­pany started at the end of last year, ac­cord­ing to Peng.

In East China’s Shang­hai, an­other hub for na­tional as­sets, a re­form plan for State-owned as­sets likely will be re­leased as early as next week at a con­fer­ence of lo­cal SASACs.

Sev­eral large State-owned en­ter­prises in Shang­hai made a se­ries of man­age­ment changes when the new round of na­tional as­set re­form was put un­der the spot­light. Some Shang­hai-listed SOEs posted an up­swing in stock prices, while oth­ers sus­pended trad­ing pend­ing “vi­tal mat­ters”.

This round of re­form will be dif­fer­ent from the pre­vi­ous round of SOE re­form with its mas­sive IPOs, as it will fo­cus on in­tro­duc­ing more pri­vate cap­i­tal and emerg­ing sec­tors.

In the mean­time, Shen­zhen is look­ing to re­lease a re­vised su­per­vi­sory sys­tem for State- owned as­sets next year, and such re­gions as Shan­dong and Jiangsu also are draft­ing re­form plans.

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