Move aims at easing concerns of selling state property cheaply before top political meetings in March
The mainland government released new regulations yesterday on the sale of state assets, which analysts said were a pre-emptive move to ease concerns of cheap disposals before top political meetings in March.
The rules require all sales of state assets and their pricing to be approved by regulatory officials. Sales to foreigners are required to be conducted through the country's regional equity exchanges.
The new rules were jointly issued by the State-owned Asset Supervision and Administration Commission (Sasac) and Ministry of Finance and made public as officials prepare for the National People's Congress and China People's Political Consultative Conference in March.
They have been released at a time when the issue of cheap sales of state assets to foreigners is likely to get special attention in Beijing.
The policy agenda for the two meetings in March is particularly important this year as the Chinese political cycle culminates in October in the 17th party congress, a five-yearly event at which the country's current and future paramount leaders are anointed.
'This is an offensive tactic from these ministries aimed at pre-empting concerns that state assets are being sold too quickly and too cheaply,' said Erwin Sanft, the head of China research at BNP Paribas.
