Improving the management of State-owned financial capital

The Central Committee of the Communist Party of China and the State Council, China’s Cabinet, have jointly issued guidelines for improving the management of State-owned financial capital to achieve the three major goals of serving the real economy, preventing financial risks and deepening financial reform.

The document points out that State-owned financial capital is an important guarantee for promoting national modernization and maintaining national financial security, but that at present there are still problems in the management of State-owned financial capital such as a decentralization of duties and unclear powers and responsibilities.

It is necessary, therefore, to further improve the State-owned financial capital system and optimize the management system.

Improving the management of State-owned financial capital aims to optimize the strategic layout of State-owned financial capital, enhance the vitality and control of Stateowned financial institutions, and preserve or increase the value of State-owned financial capital.

The administrative system, laws and regulations of State-owned financial capital and the CPC’s leadership over State-owned financial organizations will be strengthened.

In recent years, the scale of China’s Stateowned financial capital has grown steadily. It is necessary to unswervingly consolidate and develop the public sector of the economy, maintain the dominant position of Stateowned financial capital in the financial sector, and the State’s control over key financial institutions, so that State-owned financial capital better serves the development of China’s socialist market economy.