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China opens SOEs for mixed ownership in new reforms

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Press Trust of India Beijing
Last Updated : Sep 13 2015 | 6:28 PM IST
China today issued a guideline to deepen reforms of state-owned enterprises which included mixed ownership, in the latest move by authorities to make them more competitive and profitable in global markets.
China will improve the modernisation of state-owned enterprises (SOEs) enhance state assets management, promote mixed ownership and prevent the erosion of state assets, according to the guideline released by the Communist Party of China's Central Committee and the State Council.
The government will improve the competence of SOEs and turn them into fully independent market entities, state-run Xinhua news agency reported.
China's massive SOEs dominated all sectors including energy, communications and financial sectors. Most of them are going global with massive investments. But this is the first time the government spoke of mixed ownership.
Analysts in the state television, CCTV said more details were needed to know which of the sectors are actually marked for mixed ownership.
It will be a key framework document to guide and boost SOE reform, Xinhua report said.
The reform came as most of them have turned into white elephants with excess staff and state subsidies.

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First Published: Sep 13 2015 | 6:28 PM IST

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