China's state-owned companies are.......>

CHINA PRESS: China's state-owned companies are increasingly acquiring private

companies as the private firms are experiencing financial difficulties, 21st

Century Business Herald reported Tuesday. 

  - More deal offerings emerge as private companies' profit have been shrinking

significantly in recent years, according to some M&A employees of large SOEs who

have spoken to the newspaper; 

  - Private firms are facing difficulties due to industrial upgrading,

increasing costs from stricter environment protection requirements, and lenders

being less willing to lend to companies, the newspaper said; 

  - Meanwhile, SOEs are busy with their expansion plans, with some large SOEs

aiming to be one of the Top 500 companies in the world, the newspaper said;

  - However, some scholars have pointed out SOEs' operation and management

methods will stifle the vitality of private companies, and that such M&A plans

should allow half a year to a year of buffer time for private firms.