China Focus: China to diversify SOE shareholding
                 English.news.cn | 2013-12-19 17:15:30 | Editor: Yang Yi

(Xinhua File Photo)

BEIJING, Dec. 19 (Xinhua) -- China will promote a mixed-ownership economy by diversifying the shareholding structure of state-owned enterprises (SOEs), an official with the country's SOEs regulator said Thursday.

Huang Shuhe, vice chairman of the State-owned Assets Supervision and Administration Commission (SASAC), told a press conference that China will speed up the transformation of SOEs, especially parent companies, into joint-stock firms. It will also improve the shareholding structure of SOEs.

Some SOEs, state-owned capital investment companies and capital operating firms that are vital to national security will be wholly invested by state-owned capital, according to Huang.

"Absolute majority shares can be held by state-owned capital for SOEs in major industries and key fields that are the lifeblood of the economy," Huang said.

State capital can hold a relative majority of shares for important SOEs in pillar sectors and new- and high-technology industries.

It can hold minority shares in or totally exit from SOEs that do not need to be controlled by state capital and whose majority shares can be held by capital from other sources.

"We will encourage qualified SOEs to reorganize and become listed through various forms, and SOEs that are not qualified for going public can diversify shareholding by introducing different kinds of investors," according to Huang.

Strategic investors with capital, technology and managerial advantages, as well as institutional investors such as social security funds, insurance funds and private equity funds are encouraged to participate in the restructuring and reorganization of SOEs.

A policy document released last month by the Communist Party of China said the country will promote the development of the economy with mixed ownership and allow non-state capital to hold shares in projects invested by state-owned capital.

Mixed ownership is beneficial for extending state capital's functions, maintaining and increasing the value of state capital and raising its competitiveness.

It will help with the improvement of SOEs' governance structure and provide more room for the development of private capital. It will also promote integration of state capital and private capital.

Huang said the commission will prioritize the work to develop a mixed ownership economy. "Since its establishment, the SASAC has actively encouraged SOEs to introduce private capital during their reorganization."

By the end of 2012, 378 listed companies were controlled by centrally administered SOEs and their subsidiaries, while the stake of those firms held by the non-state sector accounted for over 53 percent of the total.

Meanwhile, non-state capital held more than a 60-percent stake in 681 listed companies controlled by locally-administered SOEs by the end of last year.

Huang said the commission will deepen the reform of SOEs management mechanism and further improve the modern corporate system.

It will also strengthen state-owned assets management by steering the emphasis of supervision from SOEs' operations to the use of state-owned capital and raising the proportion of state capital earnings handed over to central finance.

The proportion of state-owned capital gains handed to public finance will reach 30 percent by 2020, up from 5 to 15 percent for most SOEs.

"We will promote the optimal allocation of state-owned capital so that it can better serve the national development strategy," Huang added.

 

Related:

Shanghai working for competitive SOEs

SHANGHAI, Dec. 17 (Xinhua) -- Shanghai on Tuesday rolled out a plan to make state-owned enterprises (SOEs) more competitive.

The plan includes 20 specific measures in seven categories such as improving global profile, optimizing the investment structure, personnel systems, regulating management structure, etc. Full Story

China starts new round of SOE reform 

BEIJING, Dec. 12 (Xinhua) -- China's latest reform of state-owned enterprise (SOEs) is underway in Shanghai and Guangdong with a recombination of state-owned assets.

Shanghai, the touchstone of China's economic development, took the first step toward restructuring, when two major SOEs announced a merger agreement, Shanghai Securities News reported Thursday. Full Story

Heavier punishment for SOEs involved in work safety accidents: official

BEIJING, Nov. 29 (Xinhua) -- China's state assets manager and supervisor will revise the work safety evaluation rules to increase the punishment for state-owned enterprises (SOEs) involved in major work safety accidents, a senior official said Friday.

Laws and regulations on work safety "are the basic requirement for production and the red line which cannot be crossed," said Huang Shuhe, vice chairman of the State-owned Assets Supervision and Administration Commission (SASAC), the watchdog for China's 113 large state-owned enterprises administered by the central government. Full story

 

 

分享
China to diversify SOE shareholding
China starts new round of SOE reform
Interview: China starts new round of SOE reforms
China's SOE profits rise 10.1 pct
China Focus: Step-up predicted in China's SOE reforms
Moroccan King meets with Chinese FM in Rabat
Moroccan King meets with Chinese FM in Rabat
16th Chinese Navy escort fleet starts own missions in Gulf of Aden
16th Chinese Navy escort fleet starts own missions in Gulf of Aden
Chinese FM meets Algerian President, PM in Algiers
Chinese FM meets Algerian President, PM in Algiers
Philippine President meets outgoing Chinese Ambassador in Farewell Call in Manila
Philippine President meets outgoing Chinese Ambassador in Farewell Call in Manila
Avenue of Baobabs in Madagascar
Avenue of Baobabs in Madagascar
Beautiful Venice
Beautiful Venice
Lightning hits Libya sky
Lightning hits Libya sky
AK-47 inventor Mikhail Kalashnikov dies at 94
AK-47 inventor Mikhail Kalashnikov dies at 94
Back to Top Close
010020070750000000000000011100001329814551