Monday, Apr 27, 2015Monday, Apr 27, 2015

Foreigners likely to be mostly kept out of China's privatisations

Published on Mar 6, 2014 7:36 PM

SHANGHAI (REUTERS) - As China embarks on a new wave of opening up state-dominated industries to private capital, foreign firms will largely be kept out and authorities are likely to look to institutions like domestic pension funds and insurers.

State giants China National Petroleum Corporation (CNPC), Sinopec Corp and China Railway Corporation have said they were seeking investments from private capital and also social capital, or funds sourced from pension funds and insurance companies.

"I think those are going to be the key groups that the SOEs (state-owned enterprises) will first partner up with," said Mr Sun Lijian, deputy director of the School of Economics at Fudan University.

"It will also fit in with Beijing's strategy to diversify investment channels for its vast, locally managed pension funds."

Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!