BEIJING : China is drafting new rules for its central state-owned companies in an effort to crack down further on certain kinds of high-risk trading activity, several people briefed on the matter said.The state assets regulator outlined the rules and sought opinions on them from about a dozen firms invite
BEIJING : China is drafting new rules for its central state-owned companies in an effort to crack down further on certain kinds of high-risk trading activity, several people briefed on the matter said.
China National Offshore Oil Corporation , Sinopec, China National Petroleum Corporation, China Railway Construction Group Corporation and China North Industries Group Corporation - state firms that were invited to the meeting - also did not immediately respond to requests for comment. If enforced, the new rules could reduce trading volumes of raw materials bought and sold by some state-owned firms.
China has long tried to curb such activity by state firms, which artificially inflates trade and leaves the companies more exposed to financial risk. The draft rules also require companies whose core business does not involve trade to quit trading within a year, although trade in energy, resources, agriculture, defence and industrial supply chains could receive special approval to continue.
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