Heads of China's large state owned enterprises have met for talks in Beijing. Tuesday's meeting saw the state assets regulator deliver a warning of the dangers of irresponsible mergers and acquisitions.
The start of the year saw key SOEs controlled by the central government reporting fixed-asset investment plans worth up to 2.2 trillion yuan up 36.7 percent from a year earlier. SASAC has kept a close eye on 38 companies whose investment in the first half grew less than 20 percent. But other firms are reporting growth in fixed-asset investment hitting as high as 98.9 percent.
Li Rongrong, Director of State Assets Supervision & Administration. Comm., said, "The reason investment growth rate is so high is many enterprises have merged with or acquired other enterprises. As a result, they have to fulfill their promise in the contract, and upgrade the acquired assets."
