China’s SOEs encouraged to bring in private capital

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State-owned enterprises (SOEs) will proactively introduce private capital to help facilitate SOE reforms, said Peng Huagang, the deputy secretary of the State-owned Assets Supervision and Administration Commission, Economic Information Daily reported.

The commission also encourages SOEs to become shareholders of private companies, or to engage in their businesses in multiple ways, Peng added.

So far, three batches of 50 SOEs are undergoing mixed ownership reform trials, while 136 mixed ownership SOEs are experimenting with employee stock ownership plans.

The number of mixed ownership SOEs accounts for 68.9% of total SOEs. 

According to the report, the third batch of trial SOE reform is still in the preliminary stage. Of the first two batches, 19 SOEs have introduced multiple capital injections nearing 300 billion yuan (US$45.3 billion).

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