Policy design to propel China's SOE reforms

BEIJING - The restructuring of China's state-owned enterprises will proceed rapidly in 2015 as the government is set to unveil 10 policies for SOE reform. UBS chief China economist Wang Tao expects SOE reform will be obtained through improved corporate incentives and private participation. "We expect restructuring to be gradual as the government tries to balance growth and restructuring, overcome resistance from various interest groups, and address redundancy and debt issues," Wang said. Deteriorating SOE performance, general resilience in the labour market, and an improving social safety net may help the government move faster, she said.