China’s State-owned Assets Supervision and Administration Commission says that corporate system reforms of central state-owned enterprises are already “essentially complete,” paving the way for further reforms including ownership diversification and mixed-ownership.
Xinhua reports that as of 30 November last year SASAC had already completed approvals of the reform plans for the more than 60 central SOE groups scheduled for reforms.
Almost all of these enterprises completed amendments to industrial and commercial registration and obtained new operating licenses by the end of 2017, to become corporate enterprises registered in accordance with the Chinese Company Law.
“Responsibilities and rights are even clearer following corporate reforms of central SOE’s, which is of benefit to these enterprises truly becoming autonomously operating, independent actors in the market economy,” said a report from SASAC on SOE development and reforms.
“As an effective organisational form of the modern enterprise system, the corporate system is a fundamental condition for the establishment of a modern state-owned enterprise system with Chinese characteristics,” said Xinhua.
98% of the nearly 2500 central SOE subsidiaries included in reform plans have also already completed or are currently in the process of applying for industrial and commercial registration changes.
40% of the more than 1100 central SOE subsidiaries scheduled for termination have also been scrapped, as part of reforms that aim to improve the health and efficiency of China’s SOE sector by “trimming the fat.”
Xinhua points out that SOE reforms involve more than just a change in the names or status of public concerns, but also involves “strengthening party leadership.”
“This is an historic breakthrough for our state-owned enterprises,” said SASAC spokesperson Peng Huagang (彭华岗).
“In addition to clarifying rights and responsibilities and improving governance, corporate reforms are fundamental reforms, creating a foundation for reforms including further advancing the diversification of central SOE equity.”
SASAC said that this year it will continue to improve central SOE corporate administration, strengthen party leadership, implement the professional role of company boards, form genuine market-based operating mechanisms and strengthen central SOE core competitiveness, in order to lay sure foundations for rearing a cohort of international first-rank enterprises that are capable of competing globally.