NEWS > Business
China to speed up SOE reform by introducing assets management firms
2005-12-22 06:20:53 XinhuaEnglish

Related stories:Heads of major SOEs could be fired once found"underperforming"China to further regulate SOEs reformCentral SOEs to profit 600 bln yuan in 2005Getting SOEs listed abroad first favorable to domestic market: official 34 listed central SOEs undertake split equity structure reform China supports whole listings of businesses of qualified SOEs Central SOEs to profit 600 bln yuan in 2005 34 listed central SOEs undertake split equity structure reform China actively promotes self-innovation, resource-saving of SOEs

BEIJING, Dec. 22(Xinhuanet)-- China will introduce assets management companies as platforms to push forward the restructuring of state-owned enterprises(SOEs) next year, a senior Chinese official said here Thursday.

"The conditions for establishing assets management companies have matured in China," Li Rongrong, director of the State-owned Assets Supervision and Administration Commission(SASAC), said at a press conference.

According to Li, the property rights of SOEs have been clarified, and the perfection of corporate governance in SOEs has made fresh progress, which creates an environment for the effective operation of assets management firms.

In addition, SASAC has finished drafting the general plan for SOE restructuring and state-owned asset distribution, and assets management companies will take charge of the implementation.

Two central SOEs were appointed by SASAC as trial assets management companies, Chengtong Group in June and State Development& Investment Corp in December. They have begun taking over loss-making SOEs.

The companies, which acquire and swap assets with central SOEs'branch businesses, bad performing affiliates and non-performing assets, will provide a platform for ongoing SOE restructuring and merging.

New models of assets management will also be explored, Li acknowledged, without clarifying whether new trial companies will be added.

Next year, SASAC will formally formulate a budget system for state-owned capital operation among central SOEs to collect operational income. Whether the two trial companies will become platforms to deal with the income will hinge on future circumstances, Li said.

Reform will also focus on transforming the wholly state-owned firms into joint-stock ones and on further improving their corporate governance, including issuing a stock-stimulating systemfor SOE managerial personnel next month, he said.

A SASAC official disclosed that, according to the measure, 30 percent of the annual salary of managers in domestic listed SOEs will be paid by the stock of their firms, and 40 percent for managers in overseas listed ones. Enditem

US commercial crude oil inventories rise  
EU to promote environment friendly vehicles in transport sector  
Foreign banks allowed to operate in Kazakhstan: financial chief  
British organic food rakes in 2 billion dollars a year  
Lenovo hires former Dell exec as new CEO  
China to auction 200,000 tons of sugar to lower prices  
Shell cuts further 10,000 bpd output in Nigeria  
Dutch economy upbeat: report  

SINA English is the English-language destination for news and information about China. Find general information on life, culture and travel in China through our news and special reportsúČor find business partners through our online Business Directory. For investment opportunities with SINA, please click the link "Investor" below.
| About SINA | Investor | Media Kit | Comments or Question? |
Copyright© 2005 SINA.com. All Rights Reserved