Harbin Zhongqing Gas Co. Ltd.recently announced that 48 percent of its shares that are currently held by the State-owned Assets Supervision and Administration Commission of the Harbin municipal government, will be open for bidding until Aug. 9, which will allow privatization of the company, state media reported today.

The 269.66 million shares are available to bidders that are domestic or foreign gas enterprises with assets of no less than RMB 2 billion($26.39 million), and a company history of more than three years,according to the China Securities News . Listed companies are preferable.

The Assets Supervision and Administration Commission said that it has been planning to transfer the shares for a long time, in order to attract professional companies to join and enhance the management expertise of Harbin Zhongqing Gas.

However, the government will keep 1 percent of its shares after the transfer, called "golden shares." With these golden shares, the government will retain veto rights in the company, with the stated aim of making the privatization process go smoothly.

Harbin Zhongqing Gas was established last year by Daqing Gas Co. Ltd., a subsidiary of the state-owned China National Petroleum Corp., and state-owned Harbin Fuel Gas & Chemical Industry General Co. Ltd., holding 51 percent and 49 percent stakes respectively.

Early this month, the assets supervision and administration commission revoked the stock-holding rights of Harbin Fuel Gas & Chemical Industry General Co. Ltd., taking its shares in the aim of them to private companies. This action was largely a formality, since under the regulations of the company, only the government has the power to
privatize the company.