SOEs go own way on fund use

According to Cao Yuanzheng, chief economist with Bank of China, macroeconomic policy is expected to remain stable next year and the monetary policy can be slightly eased.

Cao said there is little room for the lowering of commercial bank interest rates in 2013. Total lending is likely to be 8.5 trillion yuan, with 14 percent growth in the broad money supply.

The State-owned Assets Supervision and Administration Commission has urged central SOEs to boost their management and risk prevention.

More than 70 central SOEs have so far established their own financing companies, which become an important platform for their capital centralization, according to the commission.

"The new financing companies are similar to the internal banks of those SOEs, providing professional capital allocation and risk prevention services," Chen said.

Despite a tight monetary policy, China's railway infrastructure investment has been expanding rapidly, resulting in booming business for China's two largest train makers CSR and CNR.

Chinese railway infrastructure investment is set to reach a new high in 2013 of more than 516 billion yuan. Both investment and operational mileage will exceed those of this year.

Data released by the Ministry of Railways on Monday showed that railway infrastructure investment reached 431.9 billion yuan from January to November, an increase of 9 percent year-on-year.

baochang@chinadaily.com.cn

 

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