Regulators set to offer SOEs more power

China will offer more power to its State-owned investment and asset-operating companies to inject vitality into the State-owned asset authorization and operating systems in the next stage of reform, a senior regulatory official said on Nov 27.

Weng Jieming, vice-chairman of the State-owned Assets Supervision and Administration Commission, made the remarks after the State Council issued a document to improve the reform of State-owned capital management earlier this month, urging an acceleration in the role transfer of State-owned enterprises from the 'management of companies' to the 'management of capital'.

Successful experience gained from previous tasks in these firms can also be introduced to other centrally and locally administrated SOEs in the future, said Weng, adding the SASAC will revise its list of power and responsibilities, as well as further clarify the contents of supervision and administration of State-owned assets.

China currently has 19 State-owned asset investment companies. They include the China Merchants Group, China Minmetals Corp, China Communication Construction Group and China Poly Group Corp. There are also two State-owned asset operation firms, the China Chengtong Holdings Group and China Reform Holdings Corp.

"As the operational and financial structure of central SOEs improves, they will see constant increases in their ability to ward off risks, their growth quality and efficiency, as well as their core competitiveness," said Ma Jun, director at the Enterprise Research Institute of the State Council's Development Research Center.