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China Daily Website

Shanghai to release reform plan for SOEs

Updated: 2013-11-26 21:18
By SHI JING in Shanghai ( chinadaily.com.cn)

Shanghai will soon release its plan to reform State-owned enterprises in line with Beijing’s initiative - laid out in mid-November - to comprehensively deepen reforms, and transition from managing companies to managing assets.

The Shanghai plan, to be released at the beginning of December, will be tailored to the nature of enterprises under a classification system, a source familiar with the State-owned Assets Supervision and Administration Commission of Shanghai municipal government told Shanghai Securities News recently.

SOEs will be divided into three categories with different objectives, depending on the nature of the enterprise:

Competitive SOEs tied closely to the market should seek higher profits.

Functional SOEs not directly linked to market forces (for instance, institutions or other entities tied to specific government projects) should aim at completing their mandates.

Public-utility SOEs should ensure the stable operation of cities and that the social benefits of utility service are maximized.

The reforms are aimed at injecting more vitality into State-owned enterprises and enhancing competitiveness, the source said.

The Shanghai commission will establish a mobility platform, or set of parameters, under which it hopes to provide State-owned enterprises with full access to the market and assure proper allocation of resources.

The platform will also accelerate the restructuring of State-controlled public enterprises and unlisted companies, and assist in SOEs’ industrial restructuring. Additionally, it will help various SOEs reach their development goals, assist emerging industries and secure services to the general public.

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