Beijing's 104 State-owned enterprises (SOEs) are waiting for the involvement of investors in their assets re-organization, mergers and acquisitions.

"Foreign and private investors are especially welcomed,'' Lu Hao, Beijing vice-mayor, announced.

Sources from the Beijing Economic Committee revealed that the total assets of the 104 industrial SOEs amounted to 25.2 billion yuan (US$3.04 billion).

They are distributed in textile and garment, pharmaceuticals, building materials, electronics and machinery sectors.

Feng Hai, vice-director of the committee, told China Daily that the 104 SOEs are generally in sound operation conditions, and need only capital support to further enlarge their business scale, upgrade their technology, and improve their professional and managerial efficiency.

"So far, the detailed plan is still in draft form, but three merger and acquisition models have been decided upon,'' Feng said.

The models are stock or property right transfers, debt-to-equity swaps and direct capital introduction.

The scheme, which will be guided by the market principles of openness, fairness and transparency, will be carried out in three stages -- information releases, bilateral negotiation, and contract implementation.

A specific organization -- Beijing State-owned Assets Management Committee -- is to be established to administrate and supervise the scheme.

The new body will be co-organized by the Beijing Economic Commission, the Beijing Municipal Bureau of Finance and some other related municipal departments, according to the Beijing municipal government.

"The scheme is expected to kick off in September,'' said Feng.

Meanwhile, in a bid to guarantee that the scheme will be carried out smoothly, provisional regulations on foreign investors and non-governmental enterprises' involvement in industrial SOEs' mergers and acquisitions and settlement for the redundant employees in these enterprises are to be issued soon.

Beijing Jingmian Group, a textile giant, is the largest enterprise among the 104 SOEs.

Jingmian's assets total 1.1 billion yuan (US$132 million).

An official of the group told China Daily that they have not got any response from possible investors yet and the decision to re-organize was based on the government and their own wishes.

Chen Jian, a researcher with the Policy Study Office of the Beijing municipal government, told China Daily that this move will give the capital city the lead around the nation in the introduction of foreign and non-governmental participation in State-owned assets re-organization.

"The first batch is limited to industry, and the following ones will extend to the commerce and infrastructure construction sectors,'' said Chen.

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