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15 days for SOEs to plan property withdrawal

0 CommentsPrint E-mail Xinhua, March 23, 2010
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In an auction for a prime land project in Beijing, China's central state-owned company, Poly Real Estate becomes the bidding king. [CFP]

In an auction for a prime land project in Beijing, China's central state-owned company, Poly Real Estate becomes the bidding king. [CFP]

China's government has asked the 78 centrally-administered state-owned enterprises (SOEs), which were earlier required to quit the real estate business, to map out withdrawal plans in 15 days.

The State-owned Assets Supervision and Administration Commission (SASAC) last Thursday ordered those SOEs whose core business was not property development to withdraw from the business, in an effort to speed up restructuring of the industry as their land acquisitions are blamed for fuelling the rise of urban house prices.

The 16 of the 127 Chinese centrally-administered SOEs which are designated property developers would continue to stay in the market and they should play a key role in promoting the healthy development of the nation's real estate industry, said SASAC Director Li Rongrong.

He also asked all centrally-administered SOEs to shoulder not only economic responsibilities but social obligations as well.

The SASAC said last week the 78 companies could pull out of property development gradually, after their current real estate projects were finished.

Property sales by centrally-administered SOEs stood at 220.9 billion yuan (32.34 billion U.S. dollars), or 5 percent of the total for the country, according to SASAC data.

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