CMSC to encourage foreign investors to purchase State capital

The Committee for the Management of State Capital at Enterprises (CMSC) is developing a two-phase scheme to encourage and attract foreign investors to purchase State capital in a number of corporations by 2030.

The first phase, in 2021-2025, involves developing and completing separate legal regulations for the sale of capital to foreign strategic investors. Specifically, a process will be developed for selecting foreign strategic investors to purchase State capital in State-owned enterprises (SOEs) and enterprises that have a capital contribution from SOEs. The CMSC will issue a list of industries and business fields that foreign strategic investors are allowed to access.

It will also issue preferential policies for and binding conditions on foreign strategic investors buying State capital in enterprises. It will make selections on the basis of the enterprise’s proposal to sell shares.

The second phase, in 2026-2030, involves developing and submitting to competent authorities for approval a list of equitized enterprises and capital sale to foreign investors as strategic investors in each period, with information on the enterprise’s portfolio, capital sale period, holding ratio, and key conditions for foreign investors. CMSC will also carry out the equitization and sale of capital according to the approved list and legal regulations.

Foreign capital contributions to enterprises will contribute to the restructuring of SOEs towards improving efficiency on the basis of modern technology, innovation capacity, and management according to international standards, while forming a professional and highly qualified management team.