More than half of large state companies have completed reform

More than half of China's state-owned enterprises (SOEs) have completed their transformation into stock companies, said a senior Chinese official here Saturday.

Of the 2,903 state enterprises holding 66.9 percent of the SOEs' total net assets, 1,464 large-scaled enterprises have become stock companies with diversified stock holders, said Li Yizhong, secretary of the Committee of the Communist Party of China for the State-owned Assets Supervision and Administration Commission (SASAC).

China has more than 1,000 state companies listed overseas, accounting for 17 percent of the country's total state enterprises and contributing 46 percent of the total profits, said Li at a forum on SOE reform.

These companies have accumulated more than one trillion yuan (120.9 billion US dollars) from the stock market, said Li.

The small and medium-sized companies have gone farther in the transformation into stock companies. Currently, more than 85 percent of the small and medium-sized companies have finished the transition. At the county level, the reform is complete.

Companies facing the loss of market, long-term profit losses orexhausted resources should leave the market through closing and declaring bankruptcy.

Up to now, China has closed 3,377 such state enterprises, concerning bad debts of 223.8 billion yuan (27 billion US dollars)from the bank, and offset 134 billion yuan (16.2 billion US dollars) of deficits for enterprises, Li said.

Source: Xinhua