Mixed-ownership reforms of SOEs to accelerate in 2018

Mixed-ownership reforms of State-owned enterprises or SOEs will accelerate to provide basis for high-quality development in 2018, China Securities Journal reported on Thursday.

Mixed-ownership reform, restructuring, listing and risk control will be four major tasks for SOEs in 2018, the report said.

China Baowu Steel Group Corporation has 115 mixed ownership enterprises, accounting for 23 percent of its total number of enterprises, said Hu Wangming, vice-president of China Baowu Steel Group Corporation.

The group corporation has implemented 23 mixed-ownership reform projects, introducing 1.73 billion yuan ($274 million) non-public capital since 2015, Hu said at a meeting on coordinated development of State-owned enterprises and other ownership enterprises held by the State-owned Assets Supervision and Administration Commission (SASAC).

In addition, China National Machinery Industry Corporation Ltd (Sinomach), China Chengtong Holdings Group Co Ltd, China National Pharmaceutical Group Corp (Sinopharm) and China Electronics Corporation (CEC) have also proactively developed mixed-ownership economic entities to maximize the enthusiasm of all investors.

Mixed-ownership reforms of SOEs will enter into an overall implementing stage and reforms in oil and military industries will further speed up in 2018.

In the first two batches of mixed-ownership reform pilots, seven enterprises are from national defense and military fields and in the third batch more will be in oil and natural gas fields.

Wang Yilin, Chairman of China National Petroleum Corporation (CNPC), emphasized the company will strengthen the management system reformand professional restructuring and integration, and promote mixed-ownership reform at the annual working meeting.

Dai Houliang, president of China Petrochemical Corporation (Sinopec Group), proposed to analyze and improve the overall plan to deepen reform and promote restructuring and integration in an appropriate and orderly manner.

In terms of military reform, China North Industries Group Corporation Limited will promote mixed-ownership reform in different classifications, continue to strengthen capital operation and promote in-depth developmentof military and civilian integration.

The average asset liability ratio of SOEs will reduce another 2 percentage points before 2020 and the standards for asset liability ratio of industrial enterprises, non-industrial enterprises and scientific research and design enterprises are 70 percent, 75 percent and 65 percent respectively, according to Shen Ying, chief accountant of SASAC.

To reduce the leverage ratio of State-owned enterprises is a pressing requirement for non-financial sector's leverage rate reduction and deleveraging, debt reduction and risk control will be the top priorities for SOEs in 2018, according to the annual working meetings of SOEs.