China to advance restructuring of central SOEs

BEIJING - China's cabinet said Wednesday more work should be done to advance the restructuring of centrally-administered state-owned enterprises (SOEs).

The country should steadily push for the restructuring of central SOEs in equipment manufacturing, coal, electricity, communications and chemical industries, according to a statement released after an executive meeting of the State Council presided over by Premier Li Keqiang.

Apart from asset restructuring, central SOEs can also direct their resources towards competitive companies or industries through equity cooperation, asset swaps, strategic alliances and joint development, the statement said.

It said the task of reducing excessive capacity should be strictly implemented, with more progress to be made in dealing with "zombie companies" and loss-making enterprises.

Debt-to-equity swaps will be conducted in a market-oriented and law-based manner, the statement said.

It also noted that reform will be advanced to allow private capital in the restructuring of central SOEs.

Since 2013, 32 central SOEs have been restructured, including a merger between two of China's top bullet train makers and that between two major steel makers.

The central SOEs that have completed restructuring saw their combined profits jump more than 40 percent in 2016 from 2012, with lower costs and higher efficiency, according to the statement.