March 04, 2009
SOE Reform - More Consolidation Ahead
World media and trading floors are twittering about whether China may save the world from a global depression. Reports are Chinese manufacturing is trending up and commodities prices are moving in the same direction in the hopes that Chinese demand will save our future. Adding to the excitement is a flurry of news leaks in the run up to the opening of China's annual parliament, the National People's Congress, March 5 in Beijing.
The biggest tease is that the NPC will approve more stimulus even though 11 separate stimulus packages were announced by Beijing on a regular basis over the past few months.
Also of note, word that a new national asset management entity will force consolidation of small and medium size State Owned Enterprises (SOE). Beijing is using the current global "slowdown" and correction in trade to create an economic oligarchy of up to 50 global size giants largely independent but with substantial and in many cases majority central government control...
Labels: global economy, national peoples congress, panic of 2008
# posted by Sinomania! : 3/04/2009 10:12:00 AM
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