September 13, 2010 (Chinavestor) Xia Bin, an academic advisor to the People's Bank of China, the country's central bank, said China should consider reducing its investments in publicly traded state-controlled companies. Bin voiced his stance in an op-ed piece published today by the China Daily Newspaper.
Bin said reducing investments in public companies is one step that China could take to rev up its fast-growing economy even further. China is already the fastest growing major economy in the world and recently surpassed Japan as the second-largest global economy behind the U.S.
China's government presides over a huge portfolio of majority stakes in a wide range of companies, ensuring that it retains overall control of corporate strategies in areas from airlines and mobile phones to banking, insurance, oil and minerals, according to Reuters.
Bin also said China should allow deposit rates to float with the aim of attracting more investment inflows. Well-known Chinese state-controlled enterprises include China Mobile (NYSE:CHL), the country's largest mobile phone carrier; Cnooc (NYSE:CEO), China's largest offshore oil driller; and PetroChina (NYSE:PTR), China's largest oil company.