China's chief official for state assets said Monday that state-owned enterprises are encouraged to be listed in the Hong Kong Stock Exchange.

Li Rongrong, minister in charge of the State-owned Assets Supervision and Administration Commission (SASAC), said on the sidelines of the ongoing 17th National Congress of the Communist Party of China (CPC).

Many state-owned enterprises, particularly those under direct control of the State Council, are quite interested in financing in the Hong Kong Stock Exchange, he said.

The SASAC shows no position to what stock markets the state- owned enterprises should resort to financing, Li said. His job is to try hard to breed potentially powerful state enterprises to become globally competitive companies.

Li said the SASAC welcomes overseas private equity funds to invest in Chinese state-owned enterprises, but warned Chinese enterprises of vicious speculation of those funds.

Echoing the policy mentioned in the report delivered by Hu Jintao to the Party congress on enhancing the vitality, control and influence of the state-owned economic sector, Li said his commission will speed up restructuring state-owned enterprises in a bid to promote their competitiveness.

(Xinhua News Agency October 16, 2007)