State real estate giant planned

The Chinese government is mulling setting up a giant state-owned real estate group with combined assets worth around US$12.05 billion, the China Daily reported. The plan is part of efforts to consolidate the State-owned real estate sector, the daily said. The newspaper cited backers of the plan as saying the move would optimize state-owned real estate resources, enhance the competitiveness of large property developers, and separate non-key businesses of the enterprises to sharpen their focus on their core businesses. Sources said the state-owned China Real Estate Development Corporation (CRED), set up in 1981, would most likely be the controlling firm of the new enterprise group.