Central SOEs vow to support Xiongan
Firms to help zone develop by building infrastructure, deploying industries: experts
About 30 central State- owned enterprises ( SOEs) have showed their determination to support the development of the recently announced Xiongan New Area in North China’s Hebei Province. Experts said these firms could help facilitate the new economic zone by taking part in infrastructure construction and supporting industrial layout.
The Xiongan New Area, which was announced on April 1, is about 100 kilometers southeast of Beijing, and spans three counties – Xiongxian, Rongcheng and Anxin – that sit at the center of the triangular area formed by Beijing, Tianjin and Shijiazhuang, Hebei’s capital.
As of the weekend, about 30 central SOEs, including China Railway Construction Corp, Shenhua Group, Sinopec Group, China Shipbuilding Industry Corp and China Unicom, have made moves to show their intention to support the central government’s plan in Xiongan.
Sinopec Group Chairman Wang Yupu said at a meeting Wednesday that the company aims to help the new area develop in a green and low- carbon way by increasing exploration and development of geothermal energy in the future, according to information that Sinopec sent to the Global Times Sunday.
Sinopec began to explore geothermal energy in Xiongxian in 2009 and its heating capacity in the county reached 4.5 million square meters in 2016, the company said, noting that it has created a “Xiongxian model” and that the technology and experience can be applied to the new area, according to the oil giant.
China Eastern Airlines told the Global Times on Friday via e- mail that the airline will promote the building of an air transport hub and logistics park in the new economic zone, and will provide services for advanced manufacturing and high tech industries
The company said that it would like to be a pioneer among the central SOEs expected to support Xiongan.
Some central SOEs are expected to help the growth of Xiongan as they could move their headquarters to the area, taking part in infrastructure construction and offer industrial support, Wang Danqing, a partner with Beijingbased consultancy ACG, told the Global Time on Sunday.
Dong Dengxin, director of the Finance and Securities Institute at Wuhan University of Science and Technology, added that to help the new economic zone deploy industries, central SOEs should make full use of their primary business.
“Central SOEs in sectors like infrastructure and transportation will be the first ones to enter Xiongan,” Dong said, noting that it is necessary for central SOEs in manufacturing, heavy and chemical industries to follow suit.
Those companies could also bring their research and development centers as well as markets to the new area to further explore high tech and green industries, according to Wang.
Firm support
Experts said that central SOEs are a reliable force that will play a leading role in the construction of the Xiongan New Area by bringing in resources like capital, talent and technology.
“As the construction planning of Xiongan will be put forward step by step, the timing for central SOEs to move in and how they will apply will be gradually revealed,” Dong said.
Apart from central SOEs, other financial institutions, cross- border companies as well as listed firms will also join the trend, experts said, noting that the process will take several years or even longer.
However, there will be certain regulations because the Chinese government will not let companies come into Xiongan randomly, and listed companies will not be allowed to take advantage of the new economic zone to manipulate capital, Dong said.
Liu Shiyu, head of the China Securities Regulatory Commission, said at a meeting on Saturday that listed companies are expected to shoulder responsibilities for China’s strategies. “Listed companies should follow and support China’s development strategy instead of bringing trouble to the country,” Liu was quoted as saying in a report by domestic news portal sohu. com.
As the Xiongan New Area is “a strategy crucial for the next millennium,” the central and local governments will make joint efforts to roll out a strict development plan, Wang noted.
“Central SEOs are waiting for the call from the government to move into Xiongan. Infrastructure construction may start from the second half this year when some companies could get involved,” Dong said.
“However, there will be certain regulations because the Chinese government will not let companies come into Xiongan randomly, and listed companies will not be allowed to take advantage of the new economic zone to manipulate capital.” Dong Dengxin, director of the Finance and Securities Institute at Wuhan University of Science and Technology