Com­plete SOE re­form this year

The Star Early Edition - - INTERNATIONAL -

CHINA’S ma­jor state-owned en­ter­prises (SOEs) will com­plete cor­po­rate sys­tem re­form by the end of 2017. The re­form tar­gets those SOEs su­per­vised by the cen­tral gov­ern­ment ex­clud­ing fi­nan­cial and cul­tural en­ti­ties, ac­cord­ing to an ac­tion plan re­leased by the State Coun­cil, China’s cab­i­net, yes­ter­day. The new sys­tem will sep­a­rate gov­ern­men­tal from busi­ness op­er­a­tions by re­struc­tur­ing SOEs into lim­ited com­pa­nies or cor­po­ra­tions. For cen­tral SOEs that be­come wholly state-funded en­ter­prises, reg­is­tered as­sets will be cal­cu­lated ac­cord­ing to the net as­set value of the pre­vi­ous year. Those that be­come en­ter­prises with di­verse eq­uity struc­tures will go through spe­cific pro­ce­dures, in­clud­ing as­set ver­i­fi­ca­tion, ap­praisal and fi­nan­cial au­dit. Cen­tral SOEs will be granted sup­port in the re­form, in­clud­ing man­age­ment of al­lot­ted land, tax ben­e­fits, reg­is­tra­tion of changes, and take-over of busi­ness li­cence qual­i­fi­ca­tions. SOE re­form specif­i­cally ad­dresses over­ca­pac­ity, poor cor­po­rate gov­er­nance and low pro­duc­tiv­ity.

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