China wants Indian firms to take part in its privatisation process

The Chinese government wants Indian private companies to participate in the privatisation of China's state-owned companies.

At a meeting of the Asian Capital Forum organised in Beijing by the Federation of Indian Chambers of Commerce and Industry, the Beijing Private Equity Exchange Market urged Indian companies to list on its bourses, which will enable them to participate in the privatisation process.

The Beijing Exchange is an arm of the Chinese government and identifies state-run companies that have to be privatised and then sells them. The privatised state-run companies of China are traded at the exchange.

According to FICCI President Saroj Kumar Poddar, the suggestion was mooted by a senior member of the exchange. This would allow Indian companies to participate in the Chinese equity market and help them acquire Chinese companies put on the block.

Earlier at a meeting, Assistant Commerce Minister Chen Jian told the visiting FICCI delegation to work out common standards in the area of software and Radio Frequency Identification Device.

The Chinese minister also pointed at the need to have common accounting standards for the two countries and the region. According to sources, an accounting firm would be appointed to work on the subject.

During the visit, two Indian firms, Nucleus Software and Salora International, have initiated dialogue with Chinese companies to form joint ventures in the areas of software and electronic equipment. Companies like SPIC, Moser Baer, and Modi Group, which are a part of the delegation, are also looking for J-V and business partners in China.

FICCI informed the Chinese leadership that it would set up a Chinese desk at its office in Delhi. The industry chamber also suggested that it would present a paper on alternative energy sources with a special emphasis on bio-fuels.