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Adaption of SOEs to Modern Valuation System and Increased Investment in R&D
This chapter explores how Chinese State-Owned Enterprises (SOEs) are adjusting to the modern valuation system by drawing inspiration from Japan's balance sheet recession and revaluation. It highlights the update made by SaaSAC, the administrative agencies for SOEs in China, to their KPI system, emphasizing net profit and ROE, and showcases the increased investment in R&D by both SOEs and private companies, resulting in innovative products, technologies, and improved product margins.