State-owned en­ter­prises to be over­hauled

China Daily (Canada) - - NEWS CAPSULE -

China plans to over­haul State-owned en­ter­prises.

Long- awaited guide­lines call for the gov­ern­ment to be more fo­cused on SOEs’ cap­i­tal re­turns and to prac­tice greater tol­er­ance with so­called mixed own­er­ship, or the par­tic­i­pa­tion of pri­vate in­vest­ment in ex­ist­ing SOEs.

Is­sued on Sun­day by China’s State Coun­cil, or cab­i­net, the re­forms re­quire SOEs to strengthen the sys­tem for boards of di­rec­tors to pre­vent un­re­stricted in­flu­ence by top ex­ec­u­tives, and the in­tro­duc­tion of more mar­ke­to­ri­ented wage and hu­man re­source sys­tems.

Liu Jipeng, di­rec­tor of the Cap­i­tal Re­search Cen­ter at the China Univer­sity of Po­lit­i­cal Science and Law, said the latest pol­icy will be ben­e­fi­cial for in­dus­tries such as avi­a­tion, rail­ways, power grids, telecom­mu­ni­ca­tions and other strate­gic ar­eas.

With im­ple­men­ta­tion of the re­form, the state-owned as­set man­age­ment sys­tem will shift from man­ag­ing en­ter­prises to man­ag­ing cap­i­tal, Liu said.

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