China will promote a mixed-ownership economy by diversifying the shareholding structure of state-owned enterprises. The announcement was made by the State-owned Assets Supervision and Administration Commission during a press conference Thursday morning.
It said the country will speed up the transformation of SOEs, especially parent companies, into joint-stock firms. The pay system will also be reformed with a focus on using performance as the basis for compensation for SOE managers. It will also improve the shareholding structure of SOEs.
"Some state owned enterprises, state owned capital investment companies and capital operating firms that are vital to national security, will be wholly invested in by state-owned capital. 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. State capital can hold a relative majority of shares for important SOEs in pillar sectors and new- and high-technology industries. And 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." said Huang Shuhe, Vice Director, State-Owned Assets Supervision & Admin. Comm..
