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CNPC says to pull out of profitable real estate business

(chinadaily.com.cn)
Updated: 2010-04-07 13:06

China National Petroleum Corp (CNPC) has announced it would withdraw from the profitable commercial real estate business, China Business News reported on Wednesday.

CNPC issued a notice on March 29, urging enterprises and institutions under it to strengthen fund management and prevent their funds from investing in the real estate industry.

A publicity head with CNPC told the paper in an interview that the pullout would target the commercial real estate business with the aim of making a profit.

Last year, CNPC made quite a stir when it was reported to have team-purchased eight buildings in Beijing Sun Star City at an extremely low price.

The State-owned Assets Supervision and Administration Commission announced in February that the 78 State-owned enterprises (SOEs) with no core businesses in the real estate industry would gradually withdraw from the business.

However, the watchdog did not specify whether SOEs were allowed to build apartments for their own employees or grant allowances in other forms.

Currently, CNPC's real estate business is mainly run by its wholly-owned subsidiary, China Huayou Group Corp.