Twofish's Blog

December 21, 2006

What I think is going on….

Filed under: china, finance — twofish @ 4:07 am

We start with the State Council directives

国务院国有资产监督管理委员会 关于推进国有资本调整和国有企业重组的指导意见
http://www.jngzw.gov.cn/Article/ShowArticle.asp?ArticleID=448

国资委就推进国有资本调整国企重组指导意见答问

http://www.gov.cn/jrzg/2006-12/18/content_472293.htm

Both those documents were issued by the State Council rather than by SASAC. This makes a difference. The State Council has supervision over all of the state-owned enterprises, whereas SASAC has a dual role. It issues regulations on the disposition of state property, but also has shareholder power over industries which are controlled by the central government.

What I think happened was that the section three of State Council opinion called for the relevant authorities to list strategic industries under their jurisdiction, and SASAC informally mentioned which central SOE’s it would list as strategic industries.

The seven industries then wouldn’t be a comprehensive list of strategic industries, merely the industries under direct SASAC control that they plan to list.

Finance isn’t listed because it isn’t under the direct jurisdiction of SASAC. The big four banks are owned by Central Huijin which is run by the Ministry of Finance, and the other banks are owned by local governments. Also finance doesn’t meet the criteria mentioned by the State Council, and in any case the CBRC is not about to cede regulatory authority to SASAC.

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1 Comment »

  1. This all makes sense. Thanks. Would you mind doing this as a comment?

    Comment by China Law Blog — December 25, 2006 @ 2:44 pm


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