China to bail out state enterprise

Beijing is injecting US$618 million in bailout funds to help China Worldbest Group, one of China's biggest state-run conglomerates, to help the company deal with US$3.1 billion in outstanding loans, The AP reported. China Worldbest, which consists of textile and drug businesses, was established in 1992 as a model for restructured enterprises. Beijing has appointed China Chengtong Group, founded in 1992 as a logistics company and now designated as a state-owned assets management company, to take over China Worldbest Group. The reports did not say why China Worldbest was having trouble repaying its loans.