Li Rongrong, minister in charge of the State-owned Assets Supervision and Administration Commission of China's State Council announced that China will take five measures to restructure and reorganize state-owned enterprises (SOEs). The measures Li introduced are:
One, to encourage more SOEs to list in the domestic market through the introduction of domestic and foreign investment.
Two, to free up China's large SOEs with regards to mergers and acquisitions.
Three, SOEs which cannot compete will be terminated. China will set up a quitting mechanism and a selection mechanism for failing SOEs.
Four, SOEs will be encouraged to look outside of China for investment opportunities and foreign partners.
Five, opportunities will be created for foreign enterprises to merge with and acquire SOEs via improving merger and acquisition laws and establishing a modern property rights system.
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