Shanxi looks to privatise coal, energy companies

THE province of Shanxi, in China's coal-mining heartland, will list up to five companies a year on overseas markets as part of the growing trend in the country to privatise state enterprises and force them to operate on western governance standards.
Shanxi looks to privatise coal, energy companies Shanxi looks to privatise coal, energy companies Shanxi looks to privatise coal, energy companies Shanxi looks to privatise coal, energy companies Shanxi looks to privatise coal, energy companies

Shanxi province in China

Staff Reporter

The venture is hoped to raise $12.6 billion in new capital and create pressure for reform in a province dominated by state-owned enterprises.

Shanxi Governor Yu Youjun said the province wanted to start the listings from 2007 with a focus on coal and other energy-related enterprises, the Financial Times reported.

“Listing is not just an issue of raising money. More importantly, it helps to form a modern enterprise system," Yu said.

“Overseas markets have strict regulations – they won't allow you to list without the establishment of a modern enterprise system.”

Yu said he had invited global investment banks and advisers – such as Goldman Sachs, Morgan Stanley, HSBC and PricewaterhouseCoopers – to Shanxi for talks, and had also held meetings with bankers in Hong Kong in July.

“Each investment bank will help two to three local companies to list in Hong Kong, London or the US," he said.

loader