Can Financial Unit Shuffling Stem SOE Red Ink?

(Beijing) – An increasing number of state-owned enterprises are trying to inject profitable financial service subsidiaries into money-losing, publicly listed entities – a strategy that's raised eyebrows in Beijing as a possible setback for the government's ongoing SOE reform efforts.

Based on a Caixin analysis of state media reports and company documents, at least six companies in the steel, mining and shipbuilding industries announced plans to acquire financial assets from state-backed parents between January and July.