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More cities to establish State assets watchdogs
By Sun Min (China Daily)
Updated: 2005-01-14 00:13

China will accelerate the establishment of specialized State-owned assets supervisory agencies at city level this year to improve the efficiency of the State assets management scheme.

State-owned Assets Supervisory and Administration Commission Vice-Chairman Li Yizhong expressed the hope on Friday that all city-level State assets watchdogs will be in place in the first six months of this year.

"There is still a lot of co-ordination work to do with the local governments to make the new State assets management system really function well," said Li.

Many reform plans are being drafted to improve the efficiency of the management of State assets and curb irregularities in the reshaping of these assets, he said.

The reshaping of China's State-owned assets management system, which started two years ago with the launch of the commission, the supervisor of the around 180 largest State-owned enterprises (SOEs) in China, had already led to the establishment of specialized State assets supervisory agencies in 31 municipalities, provinces and autonomous regions by the end of last year.

The commission and the local agencies act on behalf of the State as the owner of State assets in domestic enterprises, with designated liabilities and rights to ensure that the assets are properly used.

These functions were previously scattered among several departments, meaning that there was little regulation of the enterprises.

The establishment of the city-level watchdogs will improve the local SOE reform, especially regarding the disposal or transfer of the State assets, during which many problems have occurred due to regulatory and legal loopholes.

Li said more legislative progress will be made in this respect this year. A budget system for the management of the State assets is being drafted, and the plan will be submitted to the State Council for approval.

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