Merger, acquisition of SOEs by private, foreign enterprises encouraged: official

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Last updated at: (Beijing Time) Wednesday, November 19, 2003

Merger, acquisition of SOEs by private, foreign enterprises encouraged: official

A senior Chinese official said here Wednesday that China will create a better environment for large foreign companies to participate in the merger, acquisition and restructuring of its state-owned enterprises (SOEs).

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A senior Chinese official said here Wednesday that 8 percent of Chinese private enterprises have participated in the merger and acquisition of the country's state-owned enterprises (SOEs).

Li Rongrong, minister in charge of the State-owned Assets Supervision and Administration Commission, made the remark at an international forum of merger and acquisition.

At present, there are 13.9 percent of Chinese private enterprises preparing to participate in the merger and acquisitionof SOEs, Li said, citing statistics of the All-China Federation of Industry and Commerce.

Li said he expected more private capital to flow into the fieldof SOE restructuring and reorganization.

Meanwhile, according to Li, a better environment will be created for large foreign companies to participate in the merger, acquisition and restructuring of its state-owned enterprises (SOEs).

Li said foreign investors will see a broader field and more relaxed policies when engaged in the merger and acquisition business in China.

According to Li, foreign companies and non state-owned enterprises have been involved in 83 percent of the property righttransfer of SOEs directly under the central government since the establishment of the commission in March this year.

Foreign investors currently are concerned with sound enterprises in China, including listed companies, and most of them are targeted at leading enterprises in their industries, Li added.

China will further formulate and improve related laws and regulations to provide perfect legal guarantee for foreign investors' merger and acquisition of Chinese SOEs, Li said.

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