China’s state-owned assets regulator is pushing for strategic investors to expand their equity stakes in the country’s listed state-owned enterprises (SOE).
The State-owned Assets Supervision and Administration Commission (SASAC) recently released its “State-owned Enterprise Reform Three Year Action Plan (2020 – 2022)” (国企改革三年行动方案（2020-2022年）), outlying a range of reforms for “actively and steadily deepening mixed-ownership reforms.”
At a press conference held on 12 October SASAC deputy-chair Weng Jieming (翁杰明) said that key contents of the new reform program included:
- Advancing reforms based on category and level – mixed-ownership reforms must focus on enterprises in which state-owned capital investment companies have invested, as well as commercial category-one subsidiaries;
- Rational design and optimisation of equity structures. Encouraging state-owned share-controlled listed companies to attract strategic investors who hold 5% or even more than 5% of equity, to serve as active shareholders who participate in administration. Corresponding equity holdings in non-listed SOE’s can be even higher;
- In-depth switching of operating mechanisms. Supporting and encouraging SOE groups to implement more-marked-based and differentiated management of share-controlled mixed-ownership enterprises;
- Focusing on mixed-ownership reforms, and continually deepening cooperation with private enterprises and small and medium-sized enterprises in industry chains and supply chains. Forming a mutually integrated, joint growth condition;
- Firmly upholding party leadership.