SOE Restructuring Climax Coming in Second Half of 2015

ChinaDaily in 2010: China to cut central SOEs to 30-50 in 5 yrs

China will reduce the number of its centrally-administered State-owned Enterprises (SOEs) from 123 at the end of September to between 80 and 100 by the end of this year and to 30-50 during the 12th Five-Year Plan (2011-15) period, ce.cn reported on Monday.

WantWant in March 2015: Consolidation of SOEs in China to accelerate in 2015

State-owned enterprises in China will face large-scale reorganization and consolidation in 2015, especially in the construction, power generation and railway sectors which have overcapacity problems, the Shenzhen-based Securities Times reports, citing Lin Jin, vice president of the China Enterprise Reform and Development Society (CERDS).

Li believes that after discussion the consolidation of SOEs for years, the government will speed up the process this year by focusing on those aiming for internationalization and conducting consolidation between competitive SOEs to make them stronger and bigger.

Following strides made in China's economic development, competition between SOEs has turned focus to foreign demand from domestic demand, with the main competitors being foreign enterprises, said Wang Zhigang, director of the Enterprise Reform and Development Research Department of the Economic Research Center with the State-owned Assets Supervision and Administration Commission (SASAC) under the State Council.

Wang said consolidation is inevitable as only by growing in size can SOEs can gain clout in international markets.

iFeng today: 112家央企或重组为30到50家：一半以上不再控股 潜力股名单

Energy, PetroChina, Sinopec, CNOOC, Sinochem four state-owned petrochemical enterprises have been "ambiguous", while PetroChina and Sinopec consolidation conjecture is repeatedly mentioned the major media. Iron and steel industry , since the beginning of March, Wuhan Iron and Steel and Baosteel merger rumors have different opinions, so that the industry speculation continued. The coal fields, Shenhua, China Coal giant merger news also reported two days ago, this time, the state will fund the establishment of information together with the integration of coal in the widely circulated.

Although some parties to continue to clarify, but rumors of the merger and reorganization of large state-owned enterprises still come and go. The industry generally believe that the current round of consolidation and restructuring of central enterprises is starting, it is aimed at an object it is energy, resources and other strategic sectors of the corporate giants, at the same time, large-scale state-owned enterprises will also usher in the second half of 2015 restructuring climax.

...Exactly what areas, what stocks are likely to become the subject of integration of central enterprises? Securities agency believes that the merger should belong to the advanced manufacturing industry, China has some technical and resource advantages [ 1.05% ] , through the merger, the integration of technology and resources can be achieved, and to enhance the scale of enterprises, Chinese north and south car, six in the case of such a large rare-earth group. In addition, investors are concerned the central rate between group integration, but also should pay attention to the integration of the company under a single central rate among the Group. In this vein, automobile , shipping, oil and gas services, and other three industries of concern, and the current point in time, investors can focus on the FAW integrated system.

For the integration of central enterprises has the potential to share concepts, brokers are more optimistic about China Communications Construction, Gezhouba , China's Western Electric , Dongfang Electric , China Heavy Industries , China COSCO, Sinotrans Air Transportation Development , China Metallurgical , Minmetals Rare Earth, Datang Telecom and so on.