About 24 trillion yuan in state-owned assets to go public in 2011

A surge of mergers and acquisitions will set the tone of the restructuring of state-owned enterprises in 2011, and it is estimated that nearly 24 trillion yuan of central state-owned assets will be involved.

In 2010, stocks with mergers and acquisitions activities drew much higher yields than the average on China’s A-share market.

Restructuring through the capital market is regarded as an effective way of optimizing the state-owned sector and addressing the overcapacity problem in 2011.

Guoxin Asset Management Corp, the third state-owned asset management company wholly owned by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), was established two weeks ago and will definitely play a key role in the restructuring.

Altogether 40 central state-owned companies are expected to go public in 2010 and 2011. As 24 of them have been floated on the market in 2010, the remaining 16 will do the same in 2011.

Both the A-share market on the Chinese mainland and the H-share market in Hong Kong are considered as potential places for listing.


By Li Jia, People’s Daily Online