Head of China Research - Forsyth Barr Asia, Forsyth Barr Asia

David Millhouse

Head of China Research - Forsyth Barr Asia

Forsyth Barr Asia

Thematic (Sector/Industry)

Local press has been heavily speculating that we will get a detailed announcement of the SOE reform plan by March, where the number of central SOEs may be reduced from the current 112 to 30-60 over the next&nbsp; several years.&nbsp;It was also speculated overnight that China is considering forging mega-mergers among its big state oil companies, seeking to create new national champions. It was also speculated last week that China was looking at merging China Tel and China Unicom.&nbsp;We had hoped that the focus of SOE reform would be about (a) reducing the state&rsquo;s role in the economy (b) promoting SMEs and private companies (c) improving the efficiency and SOEs and aligning management incentives with minority shareholders.&nbsp;From what we have seen thus far however, it seems the priorities will be set at avoiding internal competition in overseas markets and creating a few large Chinese global champions.

Local press has been heavily speculating that we will get a detailed announcement of the SOE reform plan by March, where the number of central SOEs may be reduced from the current 112 to 30-60 over the next&nbsp; several years.&nbsp;It was also speculated overnight that China is considering forging mega-mergers among its big state oil companies, seeking to create new national champions. It was also speculated last week that China was looking at merging China Tel and China Unicom.&nbsp;We had hoped that the focus of SOE reform would be about (a) reducing the state&rsquo;s role in the economy (b) promoting SMEs and private companies (c) improving the efficiency and SOEs and aligning management incentives with minority shareholders.&nbsp;From what we have seen thus far however, it seems the priorities will be set at avoiding internal competition in overseas markets and creating a few large Chinese global champions.

CHINA SOE REFORM: Thoughts and implications of OIL MERGER rumours

China

SDIC Power Holdings Co Ltd . generates thermal electric and hydroelectric power. The electric power generated by the Company are supplied to Gansu area.

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SDIC Power Holdings (600886 CH)

CHINA SOE REFORM: Thoughts and implications of OIL MERGER rumours

Local press has been heavily speculating that we will get a detailed announcement of the SOE reform plan by March, where the number of central SOEs...

David Millhouse

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52-week Range

Market Cap (USDm)

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