China has called on its largest state-owned enterprises to take on more controlling stakes in Hong Kong’s companies, according to anonymous sources, adding that the city’s business elites were «just not one of us».
A meeting in Shenzhen was organized by China’s State-owned Assets Supervision and Administration Commission (SASAC) and attended by senior representatives from nearly 100 of the country’s largest state-owned enterprise (SOEs) including oil giant Sinopec and conglomerate China Merchants Group, said «Reuters», citing two of anonymous executives.
«The business elites in Hong Kong are certainly not doing enough,» one of the executives said. «Most of them are just not one of us.»
Sector Focus
Rather than just merely adding investments, Chinese SOEs were reportedly urged to gain controlling stakes to obtain more decision-making powers. The property and tourism sectors were two such areas that were highlighted, though no specific investments were discussed.
Although the financial sector was not mentioned, it is worth noting that that the property sector plays a significant role in influencing local real estate prices and acting as non-bank providers of financing. In addition to decision-making, the report highlighted adding stakes to the two sectors as a means of creating jobs for local citizens and stabilizing financial markets.
