The Chinese central government has approved the general reform scheme of the State Development & Investment Corporation (SDIC), which is ready to kick off a reform to establish an investment company, China Securities Journal reported on Thursday.
China National Cereals, Oils and Foodstuffs Corporation (COFCO), an another central state-owned enterprise chosen to establish a state-owed capital investment company on a trial basis, has completed making the pilot reform scheme, China Times reported on Thursday.
The two central SOEs were selected to be "reorganized" to establish "state-owned capital investment companies" on a trial basis. Under the program, the "state-owned capital investment companies" will be holders of state-owned stakes, and the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) will be the supervisor and regulator of state-owned assets, while the former state-owned enterprises (SOE) will be transformed into companies with mixed ownership and take full charge of the corporate operations.
Before the reform, the SASAC administers heads of central enterprises and supervises their business operations. All parities in the program have agreed that the state-owned capital investment companies should serve national strategies and goals and mainly invest in key industries and areas concerning state security and the lifeline of national economy, China Times reported.
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