Despite other reformist successes, the complex problems bedeviling China's vast SOE sector have defied solution, inhibiting further advances. So long as communism remains the nation's official goal, private ownership cannot be promoted as such. This ideological stratagem will allow China to address squarely the question of SOE ownership, probably at the party's pivotal 15th Congress late this year. A portentous experiment is now unfolding in Shanghai. One, Shanghai Industrial Holdings, has already successfully listed on the Hong Kong Stock Exchange.
Similar experiments are under way in Guangzhou and elsewhere.
They could result in the rise of large conglomerates not unlike Japan's sogo sosha, while less-viable businesses may be turned over to private interests. Meanwhile, there will be a greater push to seek both domestic and international listings to raise development capital. All Rights Reserved. Terms under which this service is provided to you. Read our privacy guidelines .