Big steps in SOE mixed-ownership reform

A tractor comes off the production line of YTO Group Corp in Luoyang, Henan province. Mixed-ownership reform of a number of central State-owned enterprises is expected to be approved within the third quarter of this year, as the coal, steel, heavy equipment and thermal power sectors will become the government's priority in restructuring its giant SOEs, said experts on Tuesday. A group of central SOEs, including China National Aviation Holding Co, Power Construction Corp of China and China National Cereals, Oils and Foodstuffs Corp, have already started to draft plans for mixed-ownership reform. "Against a backdrop of tackling overcapacity, there's a growing likelihood that China State Shipbuilding Corp and China Shipbuilding Industry Corp, two major Chinese shipbuilding companies, will merge," Li said. The State-owned Assets Supervision and Administration Commission said last week that China Hi-Tech Group Corp has been merged with China National Machinery Industry Corp. Sinomach produces construction and agriculture equipment, while China Hi-Tech is a textile machinery manufacturer.