CRI听力:Reform of State-owned Enterprises Remains Major Topic in Development Plan

Deputy Director with Shanghai State-Owned Capital Operational Research Institute Yang Jianwen says the key for SOE reform in the next five-years lies in being able to cope with China's slowing economy.

"The 13th five-year plan is a mid-term plan, but we have a short-term target, which is to steer the economy out of a slump. Still, we also have to prepare a long-term economic plan. That will depend on companies to demonstrate that they have the energy to revive the economy. State-owned companies need to improve their internal management structure, and also beef up their external competitiveness. I think these reforms will advance further in the 13th five-year plan period."

Yang says the major reform sectors will be in high-tech and manufacturing as they are of great importance for boosting China's ability to compete globally.

In September, China introduced its guidelines for the next stage of SOE reforms.

However, only over a dozen state-owned enterprises (SOE) in Shanghai have started reform programs this year.

Chief Economist with Orient Securities Shao Yu says more motivation is needed for companies in Shanghai to step up their reforms.

"So far the motivation for either the SOEs or the local governments to reform is still relatively weak, because there will be some risks if you push the reforms on a larger scale too fast. We can see the companies and local officials are very cautious about how they are going about it."

Shao adds that the refrom can be accelerated by carrying out more specific mechanisms.

"I think we should have more specific mechanisms for rewards and punishments. Those who don't do anything or who do little to help improve their company's performance should be penalized as they failed to properly carry out their duties. I think that would help accelerate the reform process."

The Chinese economy expanded 6.9 percent year on year in the third quarter of 2015, the first time the quarterly growth rate has dropped below 7 percent since after the global financial crisis in 2009.

It's being reported SOEs account for at least 30 percent of China's total GDP. Some estimates put the share as high as 45 percent.

Experts say reforms in state-owned enterprises and the financial sector will give a fresh push to the Chinese economy.

For CRI, I'm Victor Ning.