Pilot reform of State-owned capital investing, operating companies

The State Council has released a circular to promote pilot reform of State-owned capital investing and operating companies.

The aim of the trial is to separate ownership of State-owned capital and management rights of enterprises, to promote market-based operations of State-owned capital, according to the circular.

It is also to promote the reasonable flow of State-owned capital into major industries and key areas.

The circular urged carrying out bold experiments and accumulating replicable experiences and models.

State-owned capital investment and operations companies are all wholly State-owned companies and professional platforms for market-based operations of State-owned capital, the circular stated.

State-owned capital investment companies aim to serve the national strategy, optimize State-owned capital distribution, enhance industrial competitiveness, and promote industrial structure in major areas and industries concerning national security and economy.

State-owned capital operations companies aim to enhance operations effectiveness of State-owned capital, and increase returns on State-owned capital, the circular stated.

Both reorganizing and establishing new companies are encouraged, the circular added.

The leading group for State-owned enterprises reform under the State Council will be in charge of the management and supervision of the pilot reform, according to the circular.