Monday, September 21, 2015

We will push for M & A’s to improve competitiveness & profitability – China’s Premier Li

FXStreet (Mumbai) - Speaking at a meeting on state-owned enterprises (SOE) reform in early Asia, Chinese Premier Li Keqiang said the government will push for mergers and acquisitions to dispose of 'zombie' SOEs and loss-making ones to improve the competitiveness and profitability at these state-owned firms.

Li said SOEs had contributed greatly to the country's economic growth but are facing problems of bad corporate structure and governance while profitability has worsened, with more companies marking bigger losses this year.

Economists have long been calling for the shutdown of such 'zombie' state-owned companies to free up resources for private ones.
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