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SOE Reforms on Agenda at "Third Plenum", Official Says

11-01 11:16 Caijing
New measures will be taken to deepen reforms of China's giant state-owned companies at a key meeting which will run between November 9 and 12

New measures will be taken to deepen reforms of China's giant state-owned companies at a key meeting which will run between November 9 and 12, an official was quoted as saying in a statement published on the website of the country's state-owned regulator.

Analysts and investors are watching closely the meeting of the 200-member Central Committee of the Communist Party, or the "Third Plenum", in the hope that it will kick off deeper reforms in the world's second-biggest economy at a key stage of transition. Historically, the third plenum has been a springboard for economic change.

"The upcoming Third Plenum of the 18th Central Committee will make new arrangements to deepen reforms of the State-owned Enterprises," said Huang Shuhe, vice chairman of the State-owned Assets Supervision and Administration Commission (SASAC).

The official didn't say what kinds of reforms there would be, but indicated that the direction should be "a departure of government functions from enterprise management and capital".

SOEs should be encouraged to introduce private and strategic investors in pushing ahead with shareholding reforms, he said, while supervision of the state-assets should be beefed up to stimulate growth of the SOEs.

Huang's remarks were made at a national meeting on state-owned asset management on October 20, and the SASAC statement was published on October 31.

Huang also warned at the meeting over a slowdown of the SOEs in the first eight months, which he blamed largely to slack demand externally and overcapacity in some industries domestically.

The SASAC takes the issue seriously, and local bureaus should take on responsibilities to support growth, he added.

Profits of China SOEs fell 2.9 percent year-on-year in the first eight months, SASAC data showed.

Full report in Chinese, please refer to http://economy.caijing.com.cn/2013-10-31/113505177.html

 

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