Stopping the Clock on SOE Land Sprees

By the end of 2009, the 16 central SOEs accounted for a major share of the total real estate business in total assets, revenue and net profit

China's government plans to order some central state-owned enterprises (SOEs) to quit the real estate business in an aim to curb surging land and housing prices. The State-owned Assets Supervision and Administration Commission (SASAC) will require 78 centrally-administered SOEs, whose major business is not property development, to withdraw from the business. The government's move comes after a land shopping spree right after this year's NPC and CPPCC, which was blamed for driving up the country's property prices. However, a total of 16 central SOEs, centered on property, such as the China National Real Estate Development Group Corp. and the China Poly Group Corp., will be allowed to continue real estate business.