Regulator urges state firms to cut spending

The State-owned Assets Supervision and Administration Commission (SASAC) has urged state-owned companies to tighten their belts in order to weather the global financial crisis, the South China Morning Post reported, citing state media. SASAC chairman Li Rongrong warned of falling earnings at sate-owned companies and said his agency was facing unprecedented challenges as corporate performance has been hard hit by the financial crisis. Li said: "Companies must stop aggressive acquisitions while reserving more cash now." Li urged firms involved in exports to collect their debts owed to them as he expects more Western companies to go bankrupt in the current economic environment.