China expected to announce relief measures to stimulate consolidation

China expected to announce relief measures to stimulate consolidation
Published: 20 February 2014


China's State Council is expected to release specific measures to stimulate cement industry consolidation to address three key areas.

A report published by China Perspective, states that HSBC anticipates that the government may strengthen financing support for the shakeup, including bank loans and equity placement or bond issuance from secondary market.

Secondly, inefficient approval process may be simplified by the government, especially for cross-region deals.

Finally, the government may offer tax breaks to mergers and acquisitions in the industry to alleviate the heavy tax burden.