China commission planning to set up a new Asset management company
The state-owned Assets Supervision and Administration Commission in China, which currently oversees 138 state companies directly controlled by the central government, has been trying since 2005 to establish an asset management company. The plan is being considered to set up a new company to manage some of the country’s nearly 18 trillion yuan (2.6 billion dollars), China Daily reported, citing director Li Rongrong who was there to make his say during an online question and answer session. However, Li did not give details of the scope of the new company or a timetable for its establishment.
Li also warned many state-owned enterprises were not qualified to make overseas acquisitions and would have to improve their corporate governance.
“Only by increasing corporate governance can they have more opportunity to make a successful merger and acquisition,” quoted Li.
The commission is also planning to reduce its Central Government controlled oversees 138 state companies to between 80 and 100 through restructuring and consolidation.
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