The State Council has approved an action plan to restructure China’s centrally administered State-owned enterprises (SOEs) toward corporations.

After years of SOE reform, 90 percent of SOEs have turned into corporations, but some central SOEs have not finished the transformation in this respect.

The circular set a target that by the end of 2017, all central SOEs should be restructured into limited companies or corporations.

Central SOEs should formulate a feasible restructuring plan in line with the modern enterprise system, and related restructuring procedures should be strictly reviewed.

For central SOEs to be transformed into wholly State-funded enterprises, the registered assets can be declared according to the net assets’ value reviewed in the previous year.

Those that become enterprises with diversified equities will go through specific procedures, including assets verification and appraisal and financial audit, and the registered assets can be declared according to the appraisal.

The central SOEs will be granted tax preferential policies in restructuring. They should register the changes and take over the former enterprises’ business licenses and qualifications.

The circular urged the central SOE’s Party committee to take the lead in the transformation. Also, they are asked to focus on board construction to build a modern enterprise system, and improve the market-oriented management mechanism.

The circular also called for efforts to increase financial policy support and enhance supervision to prevent the erosion of State assets.