Money Matters | Sinopec offers master class in SOE mixed ownership reform
Sale of Sinopec's marketing unit not only brings in more than 100b yuan but also much publicity for President Xi Jinping's state sector reform
If you tried to tell any serious corporate managers that you were going to increase efficiency by bringing in 25 strategic investors you would be considered a joke.
But not on the mainland, where politics come before numbers.
Sinopec chairman Fu Chengyu has just conducted a master class in the sale of the oil giant’s retail arm, Sinopec Marketing.
Like it or not, he has defined the meaning of the “mixed-ownership” reform much publicised by the new leadership. Don’t be surprised to see the model followed in other state-owned enterprise (SOE) reforms to come.
First, the room will be very crowded. In the case of Sinopec, it is 25 investors sharing 29.9 per cent. That is the only way an SOE manager won’t be accused of dishing out favours to anyone. Amid the anti-corruption campaign, being accused of favouritism is the last thing one would want.
And let’s not forget that one cardinal rule in this round of SOE reform is that no one should be seen to be pocketing state assets cheaply. Having a long list of benefactors makes it easier to dodge the flak if you underestimate the price of a factory by mistake.