State-owned companies might leave China

new tenants?
via Wikipedia The State-owned Assets Supervision and Administration Committee (SASAC) is considering to allow state-owned companies to move their headquarters outside China, the China Briefing reports. It quotes the powerful Li Rongrong, chairman of the SASAC, nominally in charge of the 180+ larger state-owned companies that are part of the central government.

Hong Kong’s position as a global financial center makes it attractive for China to reposition their SOEs there, along with the fact that the territory’s ultimate legal recourse lies in Beijing. That however will still not negate a move to New York for certain SOEs, both as a future potential management experiment by the Chinese as a strategic move to gain executive knowledge and lobbying power, and also as a political move, should the circumstances over U.S.-based assets prove to be more advantageous to China to relocate a core business.

Compared to the past, the state-owned enterprises hit only seldom the headlines these days, since the private economy has outgrown the state-owned enterprises. But they are still huge and as the restructering of this sector still has to be finished, for example by putting all assets on the (stock) market, this is a potentially huge move.

Commercial
At the China Speakers Bureau we can provide you with a wide range of speakers on China's economic development and its political background. Do have a look at our website or get in touch with our people to get an even wider choice.