China to set up 3rd state-owned asset management firm

Jul. 7, 2009 (China Knowledge) - China will set up a third state-owned assets management company under the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC) this month.

The company, which will be called Guoxin Asset Management Co, will manage relatively small and weak assets of central enterprises supervised by SASAC.

Shao Ning, deputy director of SASAC, may be appointed as chairman of the company. The company's general manager is likely to be Ma Zhengwu, current chairman of China Chengtong Group.

According to industry insiders, the first batch of assets will come from central enterprises engaged in trade and logistics rather than from those involving the national economy.

SASAC will continue to act in a supervisory capacity, while the state-owned asset operation and administration company will play the role of an investor. Guoxin will serve as an important example of this model for the other state-owned asset companies.

SASAC currently has two state-owned asset operation and administration companies, namely the China Chengtong Group and the State Development and Investment Corp (SDIC).