State Ownership in China, a Different Shareholder Focus

RESEARCH NOTE

The speed of Chinese economic growth over the past three decades has been phenomenal with little signs of slowing down. Within ten years the world’s #2 economy is expected to be the largest economy in the world. While the Chinese economy has eclipsed other global superpowers, China is still considered a less-developed emerging market with a mix of state-owned enterprises (SOEs) and private sector companies. The split between private sector companies and SOEs creates a challenging dynamic for investors seeking to profit in this growing market.

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