China reveals guidelines for SOE reforms

The Chinese government has unveiled a 20-page agenda to further reform its state-owned enterprises (SOEs), promising to push them forward to independent market entities.

In-depth reforms released on Sunday will be conducted in the areas such as State assets supervision, modernisation of enterprises and the establishment of market-oriented management mechanism, reported People's Daily.

The government vows to achieve major reforms by 2020, when SOEs are expected to be more robust and influential and have greater ability to resist risks under the leadership of a batch of excellent entrepreneurs.

Among the reform guidelines, the development of mixed-ownership economy has attracted attention from the public.

Zhang Yi, chairman of the State-owned Assets Supervision and Administration Commission (SASAC), said SOEs should attract more private investors to participate the reform and merge of SOEs to go public.

Besides, non-state firms will be encouraged to join the process through various ways, including buying stakes and convertible bonds or conducting share rights swaps with SOEs, which will also be allowed to experiment with selling shares to their employees, Zhang said.

The reforms would be open to private investment in sectors including telecoms, shipping, securities, banking, oil and gas that have long been highly restricted and dominated by SOEs, said the chairman.

Zhang said no specific timetable has been set for the reform, promoting mixed ownership is aimed to enhance SOE's competitiveness and be truly invigorated after becoming independent market entities.