China

China to Release Third List of SOE Mixed-Ownership Reform Companies; COFCO Capital Reportedly on the List

Summary:

  • China will soon release the third list of state-owned enterprise (SOE) mixed-ownership reform companies which has eight SOEs on it, according to Jrj.com.
  • COFCO Capital Investment Co., Ltd., China National Gold Group Gold Jewelry Co., Ltd., Huaneng Capital Service Co., Ltd., and a subsidiary of China National Salt Industry Corporation are reportedly on the list.

Why It Matters:

  • In addition, China reportedly plans to launch a new fund, which will be worth at least RMB 100 billion, to support the SOEs mixed-ownership reforms.
  • Prior to this, China has already released two lists of SOEs mixed-ownership reform companies which include a total of 19 SOEs across multiple industries, from electricity generation, oil and gas, railroad, civil aviation, telecom, to the military industry. China Unicom (CHU.NYSE), Air China (601111.SS/0753.HK), China Eastern Air Holding Company, China Southern Power Grid, and China Nuclear Engineering & Construction Corporation are among the 19 companies.
  • Chinese analysts hold positive views of a number of companies which may benefit from the latest round of SOEs mixed-ownership reforms. These companies include: China Oilfield Services Limited (601808.SS), Daqing Huake Company Ltd. (000985.SZ), Datang International Power Generation (601991.SS), and Huaneng Power International (HNP.NYSE/600011.SS/0902.HK).