A government report says lack of capital is the biggest risk facing China’s state-owned enterprises, state media reported. The report comes from the State-owned Assets Supervision and Administration Commission of the State Council. A lack of capital has worried most SOEs, especially those in the electricity, petroleum, steel, investment, energy and real estate sectors. One expert involved with the report attributed the shortage of funds to the tightening of credit, material price hikes and reckless expansion. The rapid expansion of some SOEs is believed to have resulted in capital scarcity, as tightening of monetary policies and bank loans have failed to slow mergers and acquisitions.