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China to inject capital to quake-hit state firms

(Xinhua)
Updated: 2008-07-05 17:16

The state-owned enterprises (SOEs) which suffered heavy losses from the magnitude 8.0 earthquake in May in southwest China would receive capital injection from the government.

Special coverage: Wenchuan Earthquake

Related readings:  Quake losses of state firms top 80b yuan  Quake rebuilding to buoy SOEs  Central SOEs hit by $4.3b in losses

The State-owned Assets Supervision and Administration Commission (SASAC) would use state assets budget to support reconstruction of these enterprises, said Liu Nanchang, deputy director general of the bureau of performance assessment of SASAC.

The commission would also organize mutual support between SOEs and tune down the performance targets set for some state firms after evaluating quake losses, said Liu.

Aggregate quake losses in China's centrally-administered state-owned enterprises (SOEs) have surpassed 80 billion yuan (US$11.4 billion), more than double the preliminary estimate of 30 billion yuan, said the SASAC.

China currently has 150 central SOEs directly under the control of the SASAC, with a total assets of 14.6 trillion yuan by November of 2007. Quake losses of China's state firms top 80b yuan