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China's central SOEs to complete corporate reform by year end

Xinhua | Updated: 2017-07-26 16:37
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BEIJING - China's major state-owned enterprises (SOEs) will complete corporate system reform by the end of 2017.

The reform targets those SOEs supervised by the central government excluding financial and cultural entities, according to an action plan released by the State Council, China's cabinet, Wednesday.

The new system will separate governmental from business operations by restructuring SOEs into limited companies or corporations.

For central SOEs that become wholly state-funded enterprises, registered assets will be calculated according to the net asset value of the previous year.

Those that become enterprises with diverse equity structures will go through specific procedures, including asset verification, appraisal and financial audit.

Central SOEs will be granted support in the reform, including management of allotted land, tax benefits, registration of changes, and take-over of business license qualifications.

SOE reform specifically addresses overcapacity, poor corporate governance and low productivity.

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