At the request of the municipal government of Guangzhou in Guangdong Province, China, the pending restructuring program involving Chinese steelmakers Guangzhou Iron & Steel Enterprise Group Co. Ltd, Baosteel Group and another Guangzhou-based steel company Shaoguan Steel Group has been placed under discussion. As a result, Guangzhou Iron and Steel Co., Ltd is to continue to suspend its listing on the stock market for another three weeks, prolonging the suspension period to one month starting from November 8, 2010.
On June 28, 2008, Baosteel Group, the State-owned Assets Supervision and Administration Commission (SASAC) of Guangdong Province and the State-owned Assets Supervision and Administration Commission (SASAC) of Guangzhou reached an agreement to jointly establish Guangdong Steel Group Corporation, with Baosteel Group holding 80 percent of shares in the group for an estimated RMB 28.688 billion ($4.31 billion) in cash, with and the remaining 20 percent to be held by Shaoguan Steel Group and Guangzhou Iron & Steel Enterprise Group Co. Ltd.
However, the three companies have not yet initiated the asset integration process and the municipal government of Guangzhou city has expressed its concerned on the issue.