Beijing is accelerating its mixed-ownership reforms of central state-owned enterprises with a third batch of trial companies currently awaiting approval.
Over two-thirds of China’s central state-owned enterprises currently implement mixed-ownership systems involving a combination of state-owned capital and private capital, said Weng Jieming (翁杰明), vice-chair of the State-owned Assets Supervision and Administration Commission (SASAC) at a press conference held on 29 August.
Weng said that mixed-ownership trial work in key areas is ongoing, with the continued implementation of execution plans for the last two batches of trial enterprises.
Some of these enterprises, including Aviation Industry Corporation of China, China National Gold Group Corporation and COFCO Group have all recently completed the introduction of strategic investors, joint-stock reforms as well as restructuring and listing work.
The third batch of trial enterprises for mixed-ownership reforms is currently undergoing approval.
Weng said to journalists that SASAC is now actively and steadily advance the implementation of mixed-ownership systems by the commercial subsidiaries of central SOE’s and regional commercial SOE’s.
The Chinese government has also selected 174 companies for the first round of employee shareholding trials, including 10 subsidiaries of central SOE’s.
Zhou Lisha (周丽莎), a researcher with the SASAC Research Center, said to Economic Information Daily that mixed-ownership reforms would drive the implementation and improvement of modern corporate management systems and market-based operating mechanisms, while staff-shareholding and equity incentive schemes would spur gains in corporate efficiency and comprehensive reforms.
“The pragmatic introduction of private capital and strategic investors is stimulating enterprise vitality,” said Li Jin (李锦), executive head of the China Enterprise Research Institute (中国企业研究院).
“The focus of the current round of SOE mixed-ownership reforms is ‘mixing.’ The reform of the ownership system is the core, while listing and the introduction of employee shareholding are the methods.”