On October 17, in Shanghai, Xie Haijuan, Chairman and General Manager of Shanghai United Asset Exchange Holdings Co., discussed the critical role of state-owned enterprises (SOEs) in revitalizing the economy of Northeast China. He emphasized the need to both enhance the utilization of existing assets and expand effective investments to foster new asset growth in the region.
In an interview following the Asset Revitalization Seminar for Northeast SOEs, Xie stated, “Accelerating the reform of state-owned enterprises in Northeast China is essential to invigorate internal dynamics. This involves not only unlocking existing assets and reclaiming idle funds but also harnessing the strengths of local governments and central enterprises to create an open and integrated industrial ecosystem. This collaboration can significantly optimize the allocation of state capital and facilitate structural adjustments, thereby nurturing emerging strategic industries and developing new productivity paradigms.”
The seminar gathered representatives from Northeast central enterprises, their subsidiaries, financial institutions, think tanks, and industry experts to discuss strategies for revitalizing state-owned assets. Xie highlighted that the purpose of the meeting was to explore effective methods for asset revitalization while establishing a collaborative platform that promotes mutual support and win-win outcomes. “This is an important practice to leverage the professional capabilities of the Shanghai asset market, enhancing our service for SOEs amid their reform efforts,” he noted.
Statistical data reveals that since the beginning of 2023, central enterprise investments in Northeast China have surged, with publicly disclosed investments exceeding 800 billion RMB. Xie remarked, “Northeast China is a crucial industrial and agricultural hub, providing significant resources such as coal, steel, and grain to the nation. Its solid industrial foundation places it in a pivotal position within China’s regional coordinated development strategy. The reform of state assets and SOEs is key to revitalizing this area.”
Xie further elaborated that through years of economic growth and infrastructure investment since the reform and opening up, state-owned enterprises have accumulated substantial quality assets. He stressed that effectively utilizing these assets has become crucial for driving high-quality economic development in the context of the new normal.
With over thirty years of development, the Shanghai asset market has emerged as one of the most comprehensive and influential property markets in China. The newly established Shanghai Exchange Group is focused on creating a unified, standardized, and efficient market for resources, actively promoting a transformative operational model that combines trading institutions with operational headquarters.
Li Mingxuan, Director of the Capital Research Department at the Shanghai State-owned Assets Supervision and Administration Commission, pointed out that revitalizing existing assets can unlock significant funds for new infrastructure projects and stimulate economic growth. He emphasized that this approach could redistribute funds that are currently concentrated in certain industries, supporting high-tech industries, the service sector, and small micro-enterprises, thus optimizing the economic structure.
Successful revitalization requires professional operations from all parties involved and a shared interest in outcomes. Different strategies may be employed based on the characteristics and operational status of the assets. Li noted that while REITs (Real Estate Investment Trusts) primarily focus on infrastructure in first- and second-tier cities, they hold great potential for future growth. Asset securitization products are highly standardized and offer significant innovative opportunities going forward. He also underscored that the property trading method is most widely applicable to assets and can be extensively utilized in third- and fourth-tier cities as well as county-level areas.
During the seminar, Jiang Chengji, Deputy General Manager of CRRC (China Railway Rolling Stock Corporation), critically analyzed the challenges in the disposition of state assets and proposed targeted solutions. He identified issues such as decision-making difficulties, resource identification challenges, limited disposal methods, and low efficiency as key hurdles. Jiang shared insights from CRRC’s experience in developing a management system for idle assets and the “Yiqipai” digital management platform. He concluded that establishing a robust institutional framework could significantly enhance the efficiency and standardization of idle asset disposal, and “Yiqipai” creates a transparent, efficient, and compliant platform for managing and trading these resources.
