2020-02-13 Beijing Review

http://www.bjreview.com FEBRUARY 13, 2020 BEIJING REVIEW 39

BUSINESS

Copyedited by Rebeca Toledo

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10.8%

y.o.y.

(Source: State-Owned Assets Supervision and Administration

Commission of the State Council; designed by Pamela Tobey)

Effectiveness

Accumulated taxes and fees paid

This is an incease

of 2.7 percentage

points from 2018.

30.8 tln yuan

Accumulated revenue Cumulative net

margin

1.3 tln

yuan

5.6%

y.o.y.

Cumulative

WRWDOSURĶW

1.8 tln

yuan

9.0%

y.o.y.

8.8%

y.o.y.

(IßFLHQF\

3URĶWUDWHRI

operation revenue 3HUFDSLWDSURĶW

6.1%

Impetus

Fixed-assets

investment

completed

2.8 tln

yuan

7.6%

y.o.y.

Contribution Liabilities

2.2 tln

yuan

3.6%

y.o.y.

Average asset-liability ratio by the end of 2019

0.6

percentage point

decrease from 2018

65.1%

2019 Central SOE Reform

Research Institute, told People’s Daily.
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complementary advantages and resource al-
location. It has made China the owner of the
world’s largest-scale shipbuilding enterprise and
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power.
In addition, central and local SOE merg-
ers became a new trend last year. In May
2019, Anhui Provincial SASAC, the controller
of Shanghai-listed Maanshan Iron and Steel
Co. Ltd., or Magang, announced it would
transfer 51 percent of its stake in Magang for
free to China Baowu Steel Group, the world’s
second largest steel producer, so Magang

can develop on a larger platform and avoid a

steel glut.

“Central and local SOE mergers are based

on company development needs and are

conducive to promoting the adjustment of the

industrial structure,” Peng Huagang, Secretary

General of SASAC, said.

Moreover, the regulatory approach of

central SOEs has been optimized. In 2018,

SASAC issued a list to clarify the supervision

rights and responsibilities of investors. The

list was reformulated in June 2019, stipulat-

ing which items can be managed directly by

investors and which can be decided inde-

pendently by enterprises.

Li Mingxing said the list will help to designate

the responsibilities of investors and better mo-

bilize and stimulate enterprises.

Future plan

In 2020, a three-year action plan on SOE reform

is expected to be rolled out to optimize the

use of state-owned assets and spur innova-

tion. Under it mixed-ownership reform will be

expanded and strategic restructuring strength-

ened in sectors such as coal and electricity, steel

and non-ferrous metal, making 2020 a crucial

year.

The Central Economic Work Conference

held in December last year pointed out that it

is important to improve the comprehensive

effectiveness of state-owned capital and SOE

reform, and optimize the environment for the

development of private enterprises.

Zhou Lisha, an associate researcher with

SASAC’s research center, said deepening

SOE reform will provide room for the de-

velopment of private enterprises. With the

advancement of mixed-ownership reform,

major sectors will be gradually opened to

social capital. Since reform has made inroads

on multiple sectors including electricity,

petroleum, transportation, civil aviation and

telecommunications, there will be more

possibilities for non-public sectors of the

economy.

“In the following three years, reform will

be further deepened, making this first year

key,” Li Jin told Xinhua Finance, adding that in

2020, reform will focus on the marketization

of enterprises to invigorate micro entities

and stimulate companies’ potential for de-

velopment.

“In 2020, we will emphasize the develop-

ment of advanced manufacturing and the

revitalization of the real economy, optimize the

allocation of state-owned assets and improve

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state-owned capital,” Hao explained.

In addition to advancing mixed-ownership

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stressed it is essential to accelerate the forma-

tion of a state-owned asset supervision system

focused on capital management to com-

prehensively enhance the competitiveness,

LQQRYDWLRQLQßXHQFHDQGDQWLULVNDELOLW\RIWKH

state-owned economy.

He added that in the future, more state-

owned capital will be invested in important

industries, key sectors and emerging sectors

of strategic importance, and there will be

even more moves toward mergers and reor-

ganizations.Q