Z-Ben Advisors holds the belief that SOE reform will accelerate on the Mainland regardless of recent volatility. Our view was reinforced when CSRC indicated further support for M&A activity last Friday. Indeed, it would appear to us that rumors of State Council targeting reform at the SOE-level before 2016 are all but confirmed. This will begin with consolidation within both central and municipal SOEs, with transparency and corporate governance forming the aspirational cornerstones. SOE reform remains a key (and largely unimplemented) policy goal of the current government and recent market conditions have created an opportune and urgent moment to ramp up such reform. Z-Ben Advisors believes this may lead to greater foreign participation in mainland boardrooms, Chinese firms hastening recent moves to expand overseas and a marked improvement in mainland capital market investability and stability.

Reform at the SOE level remains a key mandate from State Council that has yet to be implemented across a backdrop of interest rate, local government debt and exchange rate liberalizations. Equity volatility in the past month was exacerbated by……

If you would like to request access to the full China Alert along with more information of our client advisory platform please email us at [email protected] 

[/pdf height="600"]https://z-ben.com/wp-content/uploads/2015/09/China-Alert-There-will-be-reforms-Aug-17-2015.pdf[/pdf]