China to accelerate SOE consolidation

China is preparing to accelerate its consolidation of companies owned by the central government, aiming to create from existing enterprises about 80 corporate giants that can be globally competitive, from the current 101, a knowledgeable source told Caixin. A key component of the plan involves dividing all major state-owned enterprises (SOEs) into three groups, according to the source at the State-Owned Assets Supervision and Administration Commission (SASAC). A document now being drafted by SASAC will be released by the end of the year, with a target of classifying all companies as either investment, financial services or industry firms, the source said. Industry companies will also include manufacturers. In a recent briefing, SASAC defined the three categories and disclosed future directions for their development, the source added, speaking on condition of anonymity because he was not authorized to speak publicly. Among the 80, about 20 will be investment companies, and about 50 will come from the industry category.