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Overseas capital in the media to be transferred
( 2002-01-23 10:08 ) (3 )

Private and overseas capital invested in the mainland news media is to be examined and directives issued for such assets to be transferred to domestically-owned companies, senior officials confirmed on Tuesday.

Overseas investors in the mainland news media will be allowed to choose one of several ways to withdraw in line with their specific situations.

The Publicity Department of the Central Committee of the Communist Party of China, the State Administration of Radio, Film, and Television said last week that the operation of Chinese press groups will remain State-monopolies and entirely excluded from private and foreign capital.

However, some mainland media have already absorbed capital for development before this policy came out earlier this month.

The disclosure of a policy to transfer foreign capital was made by an official with the General Administration of Press and Publications who declined to be identified.

Private and overseas investment can be purchased by media groups, transferred to qualified large-scale State-owned enterprises or simply withdrawn. A formal policy document has not been issued so far, said the official.

A detailed regulation has also been drafted on fund-raising for mainland media, but still awaits further approval, said the source.

The regulation allows mainland media to raise funds from press, publications, radio, movie and TV enterprises.

Funds raised through getting loans from banks, issuing corporate bonds and establishing share-holding enterprises are also permitted, but State capital should remain in control.