The Beijing municipal government is to rev up efforts in restructuring its State-owned enterprises this year.
Bai Jinrong, deputy director of Beijing State-owned Assets Supervision and Administration Commission, revealed the plan in an interview after the merging ceremony of Beijing Holdings Ltd and Beijing Gas Group Co into Beijing Enterprises Group Company, on Saturday in Beijing.
The government has determined to deepen the reform of its large State-owned enterprise structure and speed up the restructuring of its second-and third-tier companies this year, says Bai. Currently, 1,388 of its 2,800 State-owned enterprises have completed restructuring, and by 2006, the government plans to have over 90 per cent of its second-and third-tier State-owned companies restructured, said Bai in an earlier press conference in Beijing.
The newly-restructured Beijing Enterprises Group Company from Beijing Holdings Ltd and Beijing Gas Group Co, has nearly a total capital of 37 billion yuan (US$4.5 billion), becoming a State-owned enterprise flagship in Beijing's economic development and urban construction, said the company statement.
The Hong Kong-listed Beijing Holding Ltd focuses on infrastructure construction, trade, investment and logistics, and has several subsidiaries listed on domestic and overseas stock markets.
Beijing Gas Group Co is the largest gas supplier in China, and boasts 3.62 million users and a sales volume of 1.9 billion cubic metres of gas by 2003.
Beijing Enterprises Group Company will be the capital city's leading company in the construction of infrastructure and public facilities after the restructuring, said company sources.
Through a series of stock option management and capital operations, the group company will co-ordinate its subsidiaries specializing in construction of infrastructure and public facilities, to improve the capital city's public service, and accelerate the market operation of its State-owned enterprises, said Yi Xiqun, chairman of the board of the company.
Zhai Hongxiang, vice-mayor of Beijing, said at Saturday's ceremony the merging of the two State-owned enterprise giants into Beijing Enterprises Group Company, represents the strong combination of two enterprises from different industries and between domestic and overseas markets - the first case of its kind in Beijing's State assets management reform.
