Beijing’s poor-performing SOEs to be ‘severely dealt with’

[CityFarmer]

The move will change the competition landscape within China, IMO...

Beijing’s poor-performing SOEs to be ‘severely dealt with’

SHANGHAI — China will evaluate the performance of its state-owned enterprises (SOEs) next year and “severely deal with” companies that perform poorly, continually make losses or do not meet safety standards, state news agency Xinhua said yesterday.

Beijing hopes to move towards a more efficient model for such enterprises where the state retains ownership, but management is more focused on getting returns on investment than meeting policy goals.

The government is also seeking to alleviate entrenched industrial overcapacity aggravated by state firms over-investing.
...
http://www.todayonline.com/chinaindia/in...rely-dealt

[pianist]

wonder how these poor performing soes will be severly dealth with? ipo? allow foreign investment?

my impression of soes are they are mostly profitable, perhaps is the safety standards that is worrying.