China grants publications distribution rights to private firm
China has for the first time granted the rights for distributing publications to a private domestic company, providing a new channel for private capital to enter the hitherto state-controlled publications sector.
It identified the private firm as Guangzhou-based Wende Guangyun Media Distribution Group, with a registered capital of 50 mln yuan.
The company currently has three local distribution networks in place in the Beijing-Tianjin area, the Guangzhou area and in northwestern China, with 29 distribution centers.
The firm’s shareholding structure was not provided.
China implemented new regulations for the management of its publications market beginning from September 1 this year, promising to gradually open the huge state-dominated sector to various forms of capital.
According to the new rules, any firm, whether state-owned or private, can enter the publications distribution business if it has registered capital of over 20 mln yuan and has office floor space of at least 1,000 square meters.
The move is designed to attract more powerful private entities to participate in the publications field to help build a stronger mainland distribution industry, in a bid to be in a better position to face anticipated competition from foreign players.
China has promised to allow foreign distribution companies into the domestic market by the end of next year.
