China orders major state-owned firms to report large investments
Updated: 2007-08-02 13:11
China's state assets watchdog on Wednesday ordered all central state-owned enterprises (SOEs) to report their major investment activities in a bid to shun investment risks.
Some SOEs continue to increase their investment despite their high asset liability ratio and some even embezzle bank loans to invest in stocks and real estate, the State-owned Assets Supervision and Administration Commission (SASAC) said.
The China Banking Regulatory Commission announced on June 18 that two SOEs, the China Nuclear Engineering and Construction (Group) Corporation and the China Shipping (Group) Company, have misappropriated 4.46 billion yuan in bank loans to invest in the equity market and real estate projects.
The SASAC stated that the 155 central SOEs under its supervision should timely report their major overseas investment and investments in real estate, stocks, and insurance.
Senior officials of the major SOEs will be punished or even face criminal charges if they fail to report their major investments or cause heavy losses, the watchdog said, urging the firms to enhance their investment risk management and control.
|
||
|
|