The Crucial Role of China's State-Owned Enterprises in the Global Economy

Thursday, 25 April 2024, 21:30

The financial performance improvement campaign of China's state-owned enterprises (SOEs) holds significant implications for global markets. While Japan has benefitted from corporate governance reforms, China faces a structural downturn that requires more than just governance changes to uplift market sentiment.
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The Crucial Role of China's State-Owned Enterprises in the Global Economy

Why China’s reform of state-owned enterprises matters more than ever

China’s campaign to improve the financial performance of listed SOEs comes as Japan’s stock market is benefiting from corporate governance reforms. However, China is not Japan. Beijing is battling a structural downturn, and corporate governance reforms alone are not going to turn sentiment around.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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