China will improve the allocation efficiency of state capital by establishing special-purpose companies tasked with state assets investment and operation, according to State Council guidelines released Monday.
The companies will be solely state-owned and can be set up either via restructuring or new registration, according to guidelines on pushing pilot reform on state capital investment and operation companies.
State capital investment companies will make investments that are in line with national strategies and increase industrial competitiveness while state capital operation firms will be mainly tasked with enhancing returns and operating efficiencies, according to the guidelines.
The program will run on a pilot basis, and good practices are expected to be expanded.
China has been injecting vitality into thousands of state-owned enterprises (SOEs) through a series of reforms, moving toward mixed ownership and market-oriented management.
On Monday, the country's state asset regulator detailed regulation on centrally administered SOEs to avoid state asset losses.