Beijing looks at opening up state-owned firms to private capital

|By:, SA News Editor

Among the potential reforms being looked by China's leaders for the country's state-owned firms would be allowing private investors to hold up to a 15% stake, according to a local report. "We welcome private capital to invest in the state-owned enterprises," says one official when questioned about the story.

The trial balloon comes as the Communist Party's top officials meet in Beijing - the meeting's conclusion and the communique come tomorrow.

Private investors currently may buy shares of those publicly-traded state-owned firms on the stock exchange, but these can't amount to much for any one buyer. Larger stakes are one thing, but what about boardroom access to improve efficiency and corporate governance. I'll believe it when I see it, says an economist (in so many words) at Industrial Bank.

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