State-owned enterprises to be overhauled
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.