China will promote a mixed-ownership economy by diversifying the shareholding structure of state-owned enterprises (SOEs)

December 25, 2013 Leave a comment

Beijing to diversify SOE shareholding

Xinhua

2013-12-20

China will promote a mixed-ownership economy by diversifying the shareholding structure of state-owned enterprises (SOEs), an official with the country’s SOEs regulator said on Thursday. Huang Shuhe, vice chairman of the State-owned Assets Supervision and Administration Commission, told a press conference that the country will speed up the transformation of SOEs, especially parent companies, into joint-stock firms. It will also improve the shareholding structure of the companies.Some SOEs, state-owned capital investment companies and capital operating firms that are vital to national security will be wholly invested by state-owned capital, according to Huang.

“Absolute majority shares can be held by state-owned capital for SOEs in major industries and key fields that are the lifeblood of the economy,” Huang said.

State capital can hold a relative majority of shares for important SOEs in pillar sectors and new- and high-technology industries. It can hold minority shares in or totally exit from SOEs that do not need to be controlled by state capital and whose majority shares can be held by capital from other sources.

Filed under Macro Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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