Li says currently there are many poor-quality enterprises which are keen to be bought over by big centrally-controlled SOEs. But he's urging caution, adding that SASAC will give high priority to managing investment. For example, it will restrict the scale of investment to no more than 40 percent of existing funds. Li is also advising complete avoidance of high risk projects.

Li Rongrong, Director of State Assets Supervision & Administration. Comm., said, Commission "Why do we want to manage our investments so closely? Because we need to be able to manage risk. If risk exceeds certain levels, this will spell trouble for the central government."

Li says they will take a series of measures in the second half of this year all aimed at cooling investment in these centrally-controlled SOEs.

(CCTV.com July 25, 2008)