Fund managers and steel companies have invested more than 1 billion yuan in China Baowu Steel Group’s online trading subsidiary Ouyeel as part of a pilot project tied to state-owned enterprise (SOE) reform, Caixin reports. The commitment by investors including Beijing Shougang Fund Investment Co. and Benxi Steel Group Corp. complements Ouyeel’s implementation of an employee stock ownership plan promoted by the State-Owned Assets Supervision and Administration Commission (SASAC). SASAC has been working with SOEs for more than three years on “mixed ownership reform” initiatives, including employee shareholding plans. The goal is to inject more and a wider variety of stakeholders into state-controlled SOEs. Under the SASAC pilot program, which launched 10 months ago at Ouyeel and nine other companies, an eligible employee can own a equal to up to 1% of his or her employer’s equity. But at least 34% of a company’s equity must remain in the state’s hands.
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