CHINA-ECONOMY: SoE REFORM
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China's centrally administered State-owned Enterprises (SOEs) are steadily promoting the merger process this year as required by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), with a new merged company about to be born in the coal and power sector. The merger plan for China Guodian Corp, one of China's biggest coal-fired power generators and Shenhua Group, the country's largest coal miner, has been reported to the State Council. The new consortium has been temporarily named National Energy Investment Group. The planned merger will bring total assets worth more than 1.8 trillion yuan ($267.7 billion) to the new enterprise with a liability ratio of more than 60 percent, becoming the largest power generator in China. On the same day, personnel changes in other companies triggered speculation of a possible merger of domestic automakers.The heads of automaker China FAW Group Corp. and China South Industries Group Corp (CSGC), one of China's largest military defense companies, will exchange positions. Xu Liuping was removed from his roles as director, general manager and deputy secretary of the Party committee at CSGC, as well as head of Changan Automobile Group, a subsidiary of CSGC. He has been appointed the Chairman and Secretary of the Party committee of China FAW Group. Xu Ping, the former Chairman and Secretary of the Party committee at China FAW Group, has been appointed the new Chairman and Secretary of the Party committee at CSGC. |