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By Hao Zhou (chinadaily.com.cn)
Updated: 2007-08-30 16:59

The central State-owned enterprises (SOEs) that fail to position themselves among the top three in their respective industries in the next three years will be compulsorily reshuffled by the government, said Li Rongrong, director of the State-owned Assets Supervision and Administration Commission (SASAC), the Shanghai Securities News reported yesterday.

SASAC will rate and rank central State-owned enterprises (SOEs) based on a composite index, including profits, cost-control ability, core business profits, research and development expenses, as well as rates of value maintenance and increment.

Related readings:  SOE heads' careers linked to green targets  Separate budget on SOE earnings to present  China's SOE profits surge 39 percent in first two months

Li suggested that the administration will focus on SOE performance but not size.

At the end of last year, SASAC published opinions on promoting a State-owned assets adjustment and SOE's reshuffle, in which 155 central SOEs will merge into 80 to 100 SOEs by the year of 2010.

Another document guiding the central SOEs' reform is expected to be unveiled very soon. It will contain more specific explanations and assessment criteria for the reform.

Li also said the appraisal of the central SOEs' heads for their first tenure, between 2004 and 2006, will be concluded in September. At the same time, appraisal contracts for the second tenure, from 2007 to 2009, will be inked.