China To Open State Companies To Private Investors

Law360, New York (May 25, 2012, 5:09 PM EDT) -- China will allow private investment in its state-owned companies, a regulatory agency said Friday, answering calls from reformers to scale back massive state firms and hinting that Beijing may be more open to foreign money.

Private investors will be able to contribute cash or other assets, like intellectual property or land use rights, and receive equity stakes or bonds in a state-owned enterprise that is restructuring or issuing new shares, said the State-Owned Assets Supervision and Administration Commission, or SASAC.

Private groups can also establish funds...
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