The economic transformation strategy that formulated by the central government has not stopped the SOEs from expanding. ANBOUND think tank scholar highlighted that the financial expansion amongst the SOEs is a result of industrial expansion.It has extended from commercial banking to various capital management institutes, heavily affected the enterprises in both upstream and downstream. Moreover, it is seen as following the footstep of real estate industry in forming another "economic tumour". The SOEs are most likely to encounter debt crisis and there is a need to control industrial expansion.