China eyes consolidation in eight industries: paper

Mon Oct 29, 2012 12:18am EDT
 
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BEIJING (Reuters) - The Chinese government is reviewing a plan to push forward mergers and acquisitions in eight industries it views as key, including automobiles, rare earths and aluminum, the Economic Information Daily newspaper reported on Monday.

The paper also said the steel, cement, machinery manufacturing, pharmaceuticals, and electronic information industries may also see restructuring.

The consolidation is being contemplated by China's National Development and Reform Commission, the Ministry of Finance, the China Securities Regulatory Commission and the State-owned Assets Supervision and Administration of the State Council, the newspaper reported.

Officials on the State Council, China's cabinet, have called for a targeted policy to speed up consolidation of the eight industries, the paper reported.

"Enterprises are small and scattered, and there are problems with the low level of specialization and socialisation," Zhu Hongren, chief engineer at the Ministry of Industry told the Economic Information Daily. "This has resulted in inefficient resource allocation and other oustanding issues."

(Reporting By China Economics Team; Editing by Nick Edwards)