China’s state-owned firms under pressure from foreign investors to boost transparency

The increased participation of foreign investors in China’s domestic stock and bond markets is putting pressure on state-owned enterprises to increase their transparency and efficiency, but bringing them into line with global standards will take time, analysts said.Chinese state-owned enterprises (SOEs) often serve political policy ends – such as ensuring financial stability and supporting the real economy – as much as commercial objectives. The government also maintains SOEs as a safeguard…

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