The China Commission for Managing State Properties, the new manager
of China's state assets, set to work on May 22. On the subjects of
how to protect state assets and whether to resume selling shares of
listed state-owned enterprises (SOEs),
People's Daily
recently interviewed the commission head Li Rongrong.
Reporter: Reform in the past 20 years shows that in order to
keep and increase the value of state assets, government should
strengthen the supervision and examination of SOE management. What
does the commission plan to do?
Li Rongrong: To keep and increase the value of state-owned
assets, our commission must quickly set up a feasible enterprise
performance check-up system which manages state assets, personnel
and enterprise operations.
As
the owner we will also set up another appraisal system of SOE
management. The system includes indicators like finance status,
enterprise operation, debt repayment and enterprises potential.
In
the first step, we plan to select several basic indicators to
review the operations of these SOEs, and try to perfect the
appraisal system later. Now, we are asking for opinions of all
aspects and begin trial operations in some enterprises. Whatever,
the system will be popularized next year.
Reporter: What do you say about the fact that local
government is speeding up the selling of state assets?
Li Rongrong: The Ministry of Finance has issued a circular
to stop the selling of state assets. We will strengthen instruction
and supervision on the local commissions for managing state
properties, and punish related executives once state asset losses
occur.
One important task of our commission is to boost the liquidity of
state assets, and adjust its allocation and structure. When selling
or transferring these state assets, we should keep the deal
transparent, just and reasonable in order to prevent further
losses. As the representative of state assets, our commission
should strengthen management in approval, asset pricing and
dealing. Therefore, we will begin our work in four areas.
First, propel the construction of the equity market, and let the
market force decide the price of state assets.
Second, set up related regulations on equity trade. The State
Council is drafting related laws; our commission will also put
forward regulations.
Third, we should set up the equity trade monitoring network, which
will use information technology to monitor the state assets
transfer and trade. The nationwide network will trace equity
transfer and detect problems by focusing on modification
registration, logout registration, and evaluation records.
Fourth, set up a supervision mechanism. The commission, together
with other government departments, will enhance supervision on
equity trade and other intermediaries, find, correct and punish
those violators.
Reporter: Will government continue to sell state-owned
shares in the short term? If so, will government sell them on the
stock market as before?
Li Rongrong: It's right to supply social security funding by
selling shares of listed state-owned enterprises. It will adjust
the allocation and structure of state-owned enterprises, improve
the modern enterprise system and facilitate the establishment of
social security network. Meanwhile, the state share sale program is
still exploring its work, for domestic capital market is just
starting, the legal system and market mechanism need further
improvement. The shares of listed companies can be divided into
traded and non-traded ones. Therefore, the widely accepted state
share sales program will not be active for some time.
However, for these overseas listed companies, they still need to
sell state-owned shares equaling 10 percent of raised funds, and
revenue should be handed to the National Social Security Fund.
Statistics show that overseas listed companies, by selling
state-owned shares, collected social security funding of 9.885
billion yuan (US$1.19 billion) in 2002.
(China.org.cn translated by Tang Fuchun, June 15, 2003)