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China encourages shareholding reform of publishing houses

(Xinhua)
Updated: 2009-04-07 09:49

The Chinese government gave the nod to shareholding reform and mergers of publishing houses, which are normally state owned.

It "encouraged and supported" all investors, especially state-owned enterprises, to take part in restructuring publishing houses into joint-stock companies, said the circular made public Monday by the General Administration of Press and Publication (GAPP).

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In the circular, the GAPP said it encouraged and supported the existing publishing houses to merge into publishing syndicates.

It also "actively" supported publishing houses to go listed in stock markets once they were in right conditions.

The GAPP also voiced support for the development of private publishing studios, which are an "important" part of publishing industry and should be taken account by industry planning and put under administration and regulation.

The GAPP encouraged state-owned publishing houses to cooperate with private studios financially, under the condition that the state owned the majority stake.

Existing publishing houses will be divided into two sorts, non-profitable and profitable, by the GAPP, the circular said, adding that it will work out the standards for a non-profitable publishing house.

Except non-profitable ones, all publishing houses owned by local government departments, public institutions and universities must restructure themselves into market-oriented companies by the end of 2009. Those owned by the central government departments should finish restructuring by the end of 2010.

The GAPP also supported mainland publishing houses to invest in Chinese Hong Kong, Macao, Taiwan and abroad, through joint ventures and wholly-owned branches, the circular said.