Law set to cool fire sales
23 August 2006
Managers of state-owned companies who sell off state assets cheaply may be punished under a controversial property law considered by the National People's Congress Standing Committee Tuesday, the South China Morning Post reported. The latest draft of the Property Law promises equal protection for state and private property after a previous draft was shelved following debate over which should receive priority. However, officials made it clear the central government's priority was preventing losses of state-owned assets through unauthorized sales and buyouts. Hu Kangsheng, vice-chairman of the NPC's Legal Affairs Committee, said the Property Law would "protect the dominant status of the state-owned economy in the national economy" while encouraging the private sector, the newspaper reported, citing Xinhua news agency.