The prime responsibility of State-owned enterprises is to preserve and increase the value of State-owned assets, which is also a key indicator in appraisals of the SOEs’ performance, Premier Li Keqiang said at the State Council executive meeting in Beijing on Nov 29.

Inspection reports on SOEs under the management of central government were presented at the meeting, showing that central SOEs are proactively advancing structural optimization and upgrades and managing State-owned assets.

One thing to be noted is that SOEs’ business income in September and October saw positive increases, reversing the 20-month consecutive drops and strongly supporting economic and social development.

SOEs are the backbones and cornerstones of the national economy. Efforts should be made to maintain the momentum of increases in income and profits to make contributions to the country’s economic and social development and improve people’s lives, according to Premier Li.

During the discussion at the meeting, Premier Li went through the reports of central SOEs’ finances and brought forward many questions, such as why some companies gain huge profits while others suffer from losses when they are in the same sector.

He demanded that related departments present special reports on State-own assets to the State Council and that a reward and punishment mechanism for SOEs be set up.

From January to October, private enterprises saw a double-digit growth, higher than the growth of SOEs.

Premier Li demanded that SOEs, especially SOEs under the management of the central government, make efforts in core competitiveness, management effectiveness, innovation, and upgrades.

These SOEs should take the lead in boosting transformation and upgrades of the Chinese economy, which is heading for medium-to-high levels, according to Premier Li.