SOEs’ mixed-ownership reform to deepen
Superficial change won’t improve internal management: expert
China will deepen mixed-ownership reform of its State-owned enterprises (SOEs), with a third batch of pilot programs expected to cover more sectors and bring in foreign capital, according to Xiao Yaqing, chairman of the State-owned Assets Supervision and Administration Commission (SASAC).
“The central government will strengthen the market value management of SOEs mainly by injecting high-quality assets… The third batch of mixed-ownership reform pilot SOEs will deepen and cover more sectors compared with the first two batches,” Xiao told domestic financial news site cnstock.com on Monday.
He commented during this year’s two sessions of the National People’s Congress and the National Committee of the Chinese People’s Political Consultative Conference, which are being held in Beijing.
China decided to launch mixed-ownership reform in 50 SOEs last year. The third batch will involve 10 subsidiaries of centrally administered SOEs and 21 local SOEs, the Shanghai Securities News reported in February.
More than two-thirds of the subsidiaries of central SOEs have achieved mixed ownership, the Economic Information Daily reported on Monday. It said these companies introduced private capital totaling more than 338.6 billion yuan ($53.46 billion) in 2017.
However, Feng Liguo, an expert at the China Enterprise Confederation, a think tank that closely advises the SASAC, warned of “superficial” mixed ownership.
“Though some SOEs have introduced private capital,
“Our SOEs should, through reform and innovation, become front-runners in pursuing high-quality development.” Premier Li Keqiang