Zhuhai begins State-owned assets reform

A Gree Electric Appliances store in Yichang, Central China's Hubei province, Aug 30, 2013. [Photo by Zhou Jianping / Asianewsphoto]

Gree Electric Appliances Inc, located in Zhuhai, Guangdong province, announced on Thursday that the State-owned assets supervision and administration commission of the Zhuhai government, which is the company's controller, will transfer for free Gree Group's 51.94 percent shareholding in Gree Real Estate as well as creditor's rights to a newly-established company wholly-owned by the commission.

Gree Real Estate will also be separated from Gree Corporation China Ltd. Gree Electric Appliances Inc will then be the only listed company under Gree Corporation.

The transfer marks the beginning of State-owned assets reform in Zhuhai. The commission will introduce new strategic investors via public listing to transfer no more than 49 percent of shares in Gree Group. Strategic investors will indirectly hold 9 percent of shares of Gree Electric Appliances Inc.

Experts believe the introduction of strategic investors can be an important mode of State-owned assets reform. Shenyin and Wanguo Securities experts said competent and resourceful SOEs can learn from the example of Singapore's Temasek Holdings to increase their efficiency and market value.