China has embarked on building a modernized corporate structure among state-own companies as an objective in its SOE reforms. However, twenty years have passed and the progress isn’t satisfying to most people. In that regard, Guangdong province has set a goal of establishing the structure by 2017.
Some SOE owners say that will mean a change of role for the government.
"We should establish a mature board member system. That means even though the government is the biggest share holder, it should not be free to dictate corporate decisions. We should distinguish decision makers from share holders," said Zheng Bingxu, president of Hongda Blasting.
"We will gradually adopt the model of, for example, Temasek holdings, a state-owned investment firm. We will support our subsidiaries as long as they provide steady returns, and create jobs," said He Yiping, president of Guangye Asset Management.
On the other hand, in order to inject more vitality into SOEs, the Guangdong provincial government will introduce professional managers to SOEs, and incentivize their performance by allowing them to hold company shares.
Source: CCTV
