The State-owned Assets Supervision and Administration Commission
(SASAC) said in a statement yesterday that central State-owned
enterprises (SOEs) should report investments in a timely fashion.
This includes their major overseas investments and investments in
real estate, securities, and insurance, the China Business
News reported today.
The move is aimed at limiting investment risks, the statement
said.
According to the statement, companies caught ignoring the order
will be blacklisted, and the executives responsible will be
punished.
SASAC also told central SOEs to provide timely reports on
capital spending in non-core businesses.
The China Banking Regulatory Commission announced on June 18
that two SOEs, China Nuclear Engineering and Construction (Group)
Corporation and the China Shipping (Group) Company, misappropriated
4.46 billion yuan (US$589.95 million) in bank loans to invest in
the equity market and real estate projects.
SASAC also said some SOEs are increasing their investments
unwisely, leading to high levels of debt.
Companies were instructed to improve their risk management and
maintain reasonable debt levels.
According to a management measure issued by SASAC in August
2006, central SOEs should concentrate on their core businesses and
allocate no more than 10 percent of their total investment in areas
outside key activities.
Li Rongrong, head of SASAC, stressed at the end of last year
that central SOEs' investments in non-core business must be
approved by his administration.
Currently, a total of 12 central SOEs are allowed operations in
the real estate business, including China Overseas Property and
Poly Real Estate Group Co Ltd.
(China Daily August 2, 2007)
