The Clear and Simple Truth of the SOE in China

Alongside the marvel behind China's GDP miracle, many observers have been extolling the seemingly-immaculate successes of state-owned enterprises since the financial crisis. Following a slew of successful IPOs after the structural reformation began in 2000, Chinese SOEs have, without exception, become leaders in the international market. We now have world's largest oil, telecommunications, commercial banks and insurance companies in terms of market value. Even the market value of CITIC Securities had stood close to Goldman Sachs.