The 5 central enterprises of Communist China were officially converted into state-owned investment companies

On June 21, local time, 5 companies including Baowu, SDIC, China Merchants Group, China Resources Group and China National Building Materials were officially converted into state-owned investment companies. The Chinese Communist Party (CCP) issued the “Announcement on Matters Concerning the Reform of State-owned Capital Investment Companies”one day before, in which the pilot enterprises of state-owned investment companies were adjusted and optimized.

It is reported that after the Third Plenary Session of the Eleventh Central Committee, the State-owned Assets Supervision and Administration Commission of the Communist China selected 19 enterprises in three batches to carry out the pilot reform of state-owned assets. The official conversion of the five central enterprises into state-owned capital investment companies means that these five enterprises have been officially snatched away by the CCP, and it is a harbinger of the CCP about to implement a planned economy, which means all market behaviors will cease to exist, and be replaced by an internal circular economy.

The remaining 12 companies are Aviation Industry Corporation of China, State Power Investment Corporation, State Power Corporation of China, SINOMACH, China Aluminum Corporation, China COSCO Shipping, COFCO Corporation, China Minmetals, China General Technology Group, China Communications Corporation, Poly Group and China General Nuclear Power Corporation. All these companies are still in the pilot list. The CCP informed that more companies will be converted into state-owned investment companies in the future.