Official warns state firms against risky investments

The head of SASAC, China's state-owned assets regulator, warned government companies against "blindly" borrowing money and making high-risk investments as the government's monetary policy tightens and uncertainties in the economy grow, the Wall Street Journal reported. Li Rongrong, who made the comments, also said some state companies' liabilities are growing and that a small number of businesses rely too heavily on bank loans to expand. "State-owned enterprises need to pay close attention to changes in the macroeconomic situation, think about dangers when they are in safety and prepare for rainy days before it rains," he said.