SOEs can han­dle risks in over­seas deals, says SASAC

Global Times US Edition - - BIZUPDATE -

Chi­nese State-owned en­ter­prises (SOEs) have en­coun­tered in­vest­ment risks in over­seas mar­kets, but this is not a ma­jor prob­lem, Peng Hua­gang, a spokesper­son for the Sta­te­owned As­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mis­sion (SASAC), said on Mon­day.

In the last two years, SOEs have been ac­tively par­tic­i­pat­ing in pro­jects along the routes of the Belt and Road ini­tia­tive, and their global man­age­ment and op­er­a­tion ca­pa­bil­i­ties have been fur­ther en­hanced, Peng told a press con­fer­ence on Mon­day.

The to­tal out­bound in­vest­ment by SOEs ac­counted for 60 per­cent of the out­bound non-fi­nan­cial foreign direct in­vest­ment vol­ume dur­ing the pe­riod, and SOEs have launched nearly 2,000 pro­jects along the routes, Peng said.

“The prof­itabil­ity should be eval­u­ated over the long term,” he said.

How­ever, SOEs face in­creas­ing risks in in­vest­ing over­seas and it is not an easy task for them to “go out,” Peng noted.

Some SOEs have been fac­ing chal­lenges in their global ex­pan­sion lately. Chi­nese rolling stock maker CRRC Corp saw its foreign or­ders in 2017 fall 40 per­cent short of the an­nual tar­get, com­ing at just $5.7 bil­lion, me­dia re­ports said in March.

When the Na­tional Au­dit Of­fice re­leased its fi­nan­cial re­port on 155 over­seas pro­jects by 20 SOEs, there were risks fac­ing 61 of the pro­jects, which were val­ued at a to­tal of 38.49 bil­lion yuan ($6.13 bil­lion), ac­cord­ing to me­dia re­ports in July 2017.

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