Mergers and reorganization encouraged
THE State Council issued guidelines yesterday encouraging mergers and the reorganization of businesses in key industries as China transitions toward a more open, market-oriented economy and tries to reduce leverage.
Businesses are encouraged to enter into trans-regional acquisitions and reorganization so that the country can create a smaller number of higher-quality companies.
State-owned enterprises are encouraged to draw private capital through the transfer of shares, capital increases and new share issuances.
The guidelines encourage the accelerated reforms of monopoly industries and the introduction of private capital to encourage investment from various sources and diversified ownership.
Businesses struggling with overcapacity are highly advised to accelerate mergers and reorganization to cut excess capacity. Zombie enterprises are encouraged to phase out of the market.
Mergers and reorganization should be pushed in industries with low concentration ratios or with lots of homogeneous competition, to improve profitability.
The government pledged financial support for mergers and reorganization.
- About Us
- |
- Terms of Use
- |
- RSS
- |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证:沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证:31120180004
- |
- 网络视听许可证:0909346
- |
- 广播电视节目制作许可证:沪字第354号
- |
- 增值电信业务经营许可证:沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.