Economy

78 SOEs file plans to exit property market: official

(Xinhua)
Updated: 2010-04-09 00:03

BEIJING - Seventy eight state-owned enterprises (SOEs) have filed plans to exit the property sector after being ordered to do so within 15 working days, an official with the State-owned Assets Supervision and Administration Commission (SASAC) said Thursday.

"The 78 companies are very resolute on this issue and have submitted their plans to exit the property market," the official said.

The SASAC announced on March 18 it had ordered 78 state-owned enterprises (SOEs) whose core business is not property development to withdraw from the business within 15 working days. The deadline would be April 12.

The order came amid complaints the SOE's land acquisitions has fueled rises in urban housing prices.

Premier Wen Jiabao repeatedly pledged in recent months to crack down on property market speculation after urban home prices soared.

The official said it will be difficult for the companies to exit the property market for "historical reasons" and that it will "take time."

The SASAC said last month that only 16 of the 127 centrally-administered SOEs which are designated as property developers will continue to stay in the market, adding that they should play a key role in promoting the healthy development of the nation's real estate industry.