Auditing system for overseas State-owned assets
According to media reports, a new supervisory system for the auditing of overseas Stateowned assets is to be established to better regulate and control the operation and management of overseas State-owned assets and investments.
The move is aimed at helping boost the vitality, competitiveness and risk-resistance of State-owned enterprises.
The new auditing system is expected to focus on the decision-making for overseas investments and joint ventures by Stateowned enterprises, as well as their financial control systems, so as to guarantee the security of overseas State-owned assets.
Thus reviewing the planning and decisionmaking for overseas investment projects by SOEs will be the priority at first. The auditing authorities will review and analyze materials and question relevant staff at home, as well as implement on-site inspections and auditing abroad.
State-owned enterprises have made great achievements in going overseas in recent years, inspired by the country’s “going global” strategy, and marked improvement in the global resource distribution capacity and international competitiveness. They have established a series of exemplary overseas projects in the fields of railways, electricity generation, telecommunications and equipment manufacturing.
Till now China’s SOEs have entered more than 150 countries and regions, and their total overseas assets exceed 5 trillion yuan ($724.5 billion), which makes management of Stateowned assets a significant task nowadays.
The auditing system for overseas Stateowned assets will better regulate the planned overseas investments of SOEs and prevent the loss of overseas Stateowned assets.