More measures are expected to roll out to optimize capital management for State-owned enterprises (SOEs) in China, as a part of the country’s larger efforts to boost economic growth amid external challenges, experts said.
The measures would include further encouraging the mixed ownership reform and introducing new operational mechanisms for SOEs, and offering a more relaxed regulatory environment from the government, said Ma Jun, director at the Enterprise Research Institute under Development Research Center of the State Council.
The comments were made on Jan 12 at China Economic Prospect: Directions and Pathways for China’s SOE Reform in the New Era, an industry forum held by China Economic Times.
China had taken measures to tackle some SOEs’ structural problems in 2016, when the country’s top regulator for State assets, the State-owned Assets Supervision and Administration Commission, selected a group of 10 pilot State-owned companies and encouraged them to establish independent financial and operational arms to better manage their assets and serve the real economy.
Following the move, the SASAC said in late November it would release the second group of 10 pilot State-owned capital investment and operating companies.
Commenting on the moves, Xiao Yaqing, chairman of the SASAC, said earlier that those measures will help SOEs to have more efficient financial operations and resource management.
Xiao also said similar moves for provincial-level SOEs also will offer new momentum in driving regional economic growth.
Many provincial-level SOEs have started similar attempts with encouragement from local governments.
An example is the Shanxi State-owned Capital Investment and Operation Co Ltd. The company was set up to improve asset management in SOEs based in North China’s Shanxi province. The company owns and manages all shares from provincial-level SOEs, and is responsible for financial activities like mergers, acquisitions, investment, and many others.