Investors give China's SOE reforms the thumbs down

Attempts to rejuvenate state-owned industrial behemoths are too slow and come with too many caveats, investors say. They see far more opportunities in China’s private sector.

Helping China reform its state-run giants is troublesome and there are more profits to be made backing privately run enterprises, investors and bankers say.

“Five years ago I was hopeful that there would SOE reforms So far we have not seen much movement,” said Weijian Shan, chief executive of private equity firm PAG Group

China is courting private capital to help make its state-owned enterprises SOEs more efficient. However reforms have been slow given propping up GDP growth and social stability remain the top priorities.

Add to that concerns about investor rights at these behemoths that answer to Beijing and limited...

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