The State Council on Nov 4 urged continuous improvement of the management system for state assets to prevent unnecessary loss and further optimize the economic structure.
In a release document, the State Council said that mixed functions of the government and enterprises are posing a threat to the efficient management of assets.
As a special institution affiliated with the government, the state asset management authority should draw clear boundaries of its rights and responsibilities and not interfere with independent corporate operation, according to the document.
In particular, the State Council asked to strengthen supervision on the quality of state assets’ operation and financial situations of related enterprises. Investors’ rights such as investment plans, property management and decision-making on important issues should be delegated to operators of state assets, instead of being executed by the supervision authority.
The authority will also adopt more legalized and marketized approaches in order to curb items for administrative examination and approval.
Furthermore, the State Council called for reforms in the authorized operation system for state assets to raise its efficiency on resource allocation.
The State Council will also improve legislation, transform government functions and lay out support policies to help advance the initiative.