China to accelerate restructure of state firms

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China is accelerating the restructure of its state-owned enterprises under the direct control of the central government. Plans to speed up the process were announced by the State Asset Supervision and Administration Commission.

The Commission says since 2003, the number of centrally controlled SOEs has been reduced from 196 to 136, mainly through mergers and acquisitions. With enhanced competitiveness, many of these firms have gained a listing on domestic or overseas markets.

The Commission says the government will continue with its strategy of encouraging these firms to go out and explore the international market.

Figures show that by the end of 2008, these firms had set up nearly 5,000 branches overseas, including in the energy, construction, telecom and chemical sectors.