China Can Learn from France's Plan to Sell Equities of SOEs to Solve Financial Problem
ANBOUND
Recently, France is planning to sell entities of state owned enterprises to solve its financial problem. ANBOUND research team holds that China can learn from this method of the French government. First, currently, Chinese government is bearing huge debt burden. Its debt surpassed 20.6 trillion yuan in June, 2013. Selling part of the entities of SOEs will help to ease the debt burden. Second, selling part of SOEs' equities will bring in social capital, which will contribute to SOEs’ mixed ownership reform.