China to Push M&As from Key Industries

BEIJING, Sep. 27 -- China will continue to push forward businesses' mergers and acquisitions (M&As) from key industries such as automobile, steel, cement, machinery, electrolytic aluminum, and rare earth, the Shanghai Securities News reported Monday, citing Zhu Hongren, chief engineer of the Ministry of Industry and Information Technology (MIIT).

There are severe problems in these sectors which has hindered competitiveness, industry optimization, and growth pattern transformation.

They have shown characteristic of economies of scale, meaning these different sectors would be more profitable when their production comes to a certain size, Zhu said.

Zhu also said China's automobile, steel and cement industries have made progress in mergers and acquisitions in recent years, which paved the way for further moves, according to the report..