CRI听力:New Guideline on China's SOE Reforms Released

According to the guideline, major reforms in SOE's key areas will be achieved by 2020, when SOEs are expected to be more robust and influential and have greater ability to avoid risks.

Speaking at a press conference this morning, Zhang Xiwu, vice chairman of State-owned Assets Supervision and Administration Commission, says 6 major tasks will be focused on regarding the deepening of SOE reforms.

"We should promote classified reform, modernize SOEs, enhance state assets management, promote mixed ownership, prevent the state assets from erosion, and strengthen and improve the Communist Party's leadership of SOEs. The reform should also be conducted in an open and transparent way. The policy, schemes, measures and the process of the SOE reform must be made public and be monitored by the people."

The basis and starting point of the reforms is to turn the SOEs into fully independent market entities, as well as to incite and release the enterprises' vitality.

The government will also consolidate and clean up some SOEs for better resource allocation.

One of the highlights of the guideline is that mixed-ownership reform becomes the most significant means to improve the SOEs' efficiency.

Lian Weiliang, deputy head of the National Development and Reform Commission, says multiple types of investors will be brought in by SOEs and encouraged to go public, though no specific timetable will be set.

"First of all, non-state firms will be encouraged to join the process in various ways, including buying stakes and convertible bonds from or conducting share rights swaps with SOEs. Secondly, SOEs will be encouraged to invest in their non-state counterparts. Thirdly, SOEs will also be allowed to experiment with selling shares to their employees."

The mixed-ownership reform will promote new technology, management and business models for SOEs.

In the meantime, the guideline also mentions that SOEs will be divided into two categories, for-profit entities and those dedicated to public welfare.

The former will be market-based and stick to commercial operations and should aim to increase state-owned assets and boost the economy, while the latter will exist to improve people's quality of life and provide public goods and services.

For CRI, I'm Xie Cheng.