China Telecom and China Unicom will transfer US$4.3 billion in state-owned assets into enlisted companies by the end of 2003, said Li Rongrong, director of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC).
Both China Telecom and China Unicom are major SOEs under SASAC's direct supervision. According to Li, China Telecom will inject the assets of its 6 provincial companies, valued at US$4 billion in terms of net assets, into a newly established corporation exclusively owned by the state, and further transfer the asset into an enlisted company. Similarly, China Unicom will first inject the assets from 9 provincial companies into a state-owned corporation and further transfer the asset into BVI companies and enlisted companies overseas. The asset was evaluated at US$0.3 billion in terms of net asset.
Li said SASAC had approved 48 enterprises to transfer property rights or assets from April to September, involving US$2.7 billion of state-owned assets or equities. During the internal reforms and integration of large SOEs, the legal qualifications of 192 enterprises have been nullified, among which 54 were dismissed, retracted or bankrupted, he said.