Prior studies suggest that high levels of state ownership are related to poor performance of listed companies in China. As a result, privatization has become an important tool to revitalize the under-performing state-owned companies. We have therefore witnessed a continuous decline in the state shareholding over the past decade as a result of the ongoing economic reforms. In this article, we examine the role of state ownership in real estate sector to find out whether shrinking state ownership in a strategically important sector like real estate impact on performance.
- real estate
- state ownership