A major Chinese province has transferred equity stakes in three state-owned enterprises to its social security fund in a move seen as a model for nationwide reform of China’s inefficient state sector.
Shandong transferred 30 per cent stakes in Shandong Energy Group, Shandong Airport Ltd and Shandong Salt worth a combined Rmb3.3bn ($532m) to the social security fund. The provincial government has said it eventually plans similar stake transfers for all 471 of the companies it controls.
The architect of the plan, Guo Shuqing, served as head of China’s securities regulator before taking over as governor of Shandong province, China's second largest by population, in 2013. Mr Guo, a former chairman of China Construction Bank, is considered a leading candidate to succeed Zhou Xiaochuan as China’s central bank governor.