China's SPIC hints at merger with China Huaneng

Updated 2017-07-10 08:55:36 Xinhua

China's state energy giant State Power Investment Corporation (SPIC) has indicated a potential merger with China Huaneng Group, another state power company.

The SPIC and China Huaneng are "both thinking about forming a union," but all related processes are still ongoing, according to Wang Binghua, chairman of SPIC.

SPIC and China Huaneng are among the nine power companies in China, which are all SOEs operating in similar ways. This is "obviously inappropriate" as it disrupts resource-distribution, efficiency and benefits of the sector, Wang said.

To make SOEs leaner and healthier, the Chinese government is planning to reduce the number of central SOEs to under 100 this year, with coal power, steel, and heavy equipment manufacturing industries in the spotlight.

The highlights of mergers and restructuring in the power sector is yet to come, Wang said.

In June, the listed arms of Shenhua Group, the country's largest coal producer, and China Guodian Corporation, a major electricity generator in China, suspended trading of their stocks on the same day, a move widely considered to signal a merger.

Analysts and industry insiders expect that possible mergers and restructuring between central SOEs will help reduce overlapping investments and ease overcapacity in the coal and power sectors.

In the first five months of this year, combined profits of SOEs were more than 1 trillion yuan (about 150 billion U.S. dollars), up 25.5 percent year on year, dwarfing the 1.7-percent increase for the whole of 2016, according to the Ministry of Finance.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58July 20 2018 09:13:55

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16July 20 2018 09:13:55

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18July 20 2018 09:13:55

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords