Beijing to pare down number of SOEs from 112 to 40

Beijing appears set to force conglomeration among state-owned enterprises, paring the total from 122 conglomerates down to just 40, Reuters reported, citing state media. The consolidation will affect 277 firms listed on the Shanghai or Shenzhen stock exchanges with a total market capitalization of more than RMB10 trillion (US$1.6 trillion), according to the state-affiliated paper Economic Information Daily. The consolidation will begin in commercial sectors, particularly in competitive sectors, according to the paper, which quoted an unnamed official. The paper said the goal was to avoid competition over projects like that sparked between rail firms CSR Corp. (1766.HKG, 601766.SHA) and China CNR Corp. (6199.HKG, 601299.SHA) abroad.