State-owned Assets Supervision and Administration Commission Determines the General Thinking of Central Government Reform

State-owned Assets Supervision and Administration Commission Determines the General Thinking of Central Government Reform

At the press conference held by the State Council's New Office, Shao Ning, deputy director of the State-owned Assets Supervision and Administration Commission of the State Council, set the overall strategy of the 12th Five-Year Plan for the reform of central enterprises as a major goal and five major strategies. In answering a reporter’s question, he clearly stated that following the withdrawal of 14 central SOEs in real estate business in 2010, it is expected that more than 20 central SOEs will withdraw from the sector this year; the proportion of dividends paid by state-owned enterprises will be further enhanced; in addition, the SASAC will also investigate central SOEs. Loss of responsibility for overseas projects.
After the conference, Shao Ning said in an interview with reporters that the next step in the reform of state-owned enterprises is to completely marketize state-owned enterprises, especially in the competitive sector. The bottom line is to achieve overall listing of the main business.
“One big goal” means that during the “Twelfth Five-Year Plan” period, we must do strong and excellent state-owned enterprises, foster world-class companies with international competitiveness, promote the concentration of state-owned capital in important industries and key areas, and promote the ownership structure to be more pluralistic. Change of securities and securitization. For competitive state-owned large companies, relying on the capital market to implement public company reform, diversification of enterprises, and capitalization of state-owned assets is the specific form of the final integration of state-owned large companies and market economy.
Focusing on this core goal, we must focus on implementing the "five strategies" of transformation and upgrading, scientific and technological innovation, internationalized operation, strong talents, and harmonious development. Specifically, it includes: First, we must further shrink the front and concentrate resources on important industries and key areas. Second, to further promote corporate restructuring and optimization, resource allocation. Third, improving the corporate governance structure is the board of directors that is currently being promoted. Fourth, further improve the state-owned assets supervision system, ensure transparency, and assess and evaluate more effectively and scientifically. Fifth, to further promote internal reforms in the enterprise to further marketize the internal mechanism and at the same time further reduce the burden on the state-owned enterprises. Therefore, the reform of state-owned enterprises is still far from over, and the amount of tasks is still very large.
For the withdrawal of the central enterprises from the real estate industry, Shao Ning said that the main business is not a central enterprise of real estate and it needs to gradually withdraw from the real estate industry. This is an inevitable requirement and direction for highlighting the main business, but there is no specific timetable for the implementation of withdrawal of real estate requirements by the central SOEs. .
Shao Ning pointed out that the progress of the withdrawal of central enterprises from real estate has been relatively smooth. There have been 14 real estate companies that have already withdrawn from the industry in the past year, and it is estimated that more than 20 companies can withdraw this year. Other companies have finished their work, finished the existing projects, gradually withdrew, and focused their resources on the development of the main business.
According to reports, some central enterprises are involved in real estate with very complicated historical reasons. Some of the staff quarters of central enterprises are self-built, self-maintained, and self-managed. Such companies need a process to truly withdraw from real estate; there are also some enterprises that need to develop their original land for the resettlement of workers due to the relocation involved. Existing projects are done. The SASAC’s policy on the real estate industry is very clear. “There are real estate-based businesses that can participate in commercial bidding. Without the main business, they can only engage in the development of free land, and gradually withdraw from the development.”
Regarding the issue of dividends paid by central enterprises, Shao Ning said that with the further improvement of state-owned enterprises' operating status, especially after the state-owned enterprises' burdens have basically been eliminated, the percentage of state-owned enterprises that pay dividends will be further increased. For state-owned enterprises in the competitive sector, the increase in the proportion of paid-in companies to the average level of dividends paid by domestic listed companies is a more reasonable state.
Shao Ning said that in 2010, the total profit of the central enterprises was 1.1315 trillion yuan, and the net profit attributable to the parent company was 562.1 billion yuan. In 2010, the estimated value of state-owned capital returns of central SOEs was about 60 billion yuan, nearly doubling from 31.5 billion yuan in 2009. This was mainly due to the increase in the percentage of dividends paid.
According to reports, the operating income of state-owned capital that was submitted by state-owned enterprises since 2007 was initially divided into 5% and 10%. Starting from 2011, the proportion of state-owned capital income collected by central SOEs has been appropriately raised. The ratio of dividends paid by central SOEs has increased from the previous 10% to 15%, and will expand the scope of central state-owned capital operating budgets.
Regarding the problem of the flow of profits of state-owned enterprises, Shao Ning said that during the “11th Five-Year Plan” period, the net assets of central enterprises increased by an average of 15.6% per annum, which basically doubled in five years. The profits of state-owned enterprises form new net assets through investment. The assets of state-owned enterprises are savings that belong to the country and belong to the entire people. Once the country needs money, it can be fully used. He said, “In recent years, China’s fiscal revenue has increased by a large margin, but it will not be so big. China will also face the problems of old age society. By that time, it needs money. I believe this asset can play a big role.” The central enterprises “going out” said Shao Ning that the overall efficiency of the central enterprises’ overseas operations in recent years is relatively good. In 2009, the total overseas assets of the central SOEs accounted for 19% of the total assets of the central SOEs, and the realized profits accounted for 37% of the total profits of the central SOEs. The figures show that the strategy of “going global” by Chinese companies is correct, and it also shows that Chinese companies have comparative advantages in many directions.
In view of the loss incurred by some overseas projects, Shao Ning said that a major loss such as this is actually a major loss of state-owned assets. From the institutional point of view, the SASAC has identified the reasons and has made clear and accountable responsibilities. He admits that with the growth of the overseas assets of the central enterprises, the supervision of overseas assets is actually a new topic for SASAC. The SASAC is studying two documents: Interim Measures for Supervision and Administration of Overseas Assets of Central Enterprises, and Central Enterprises. Interim Measures for the Administration of Overseas Property Rights. However, he also stated that no matter how to improve the effectiveness of supervision, the main body of responsibility must be clear, because the overseas assets of the central SOEs are generally the assets of the second-tier companies, and the supervisory responsibilities are first of all at the group companies.
After the press conference, Shao Ning said in an interview with reporters that the next step in the reform of state-owned enterprises is to gradually transform the current state-owned enterprises, especially the state-owned enterprises in the competitive sector, into clean and clean listed companies. The market went completely market-oriented. The difference from previous years is that we demand that the bottom line is the overall listing of the main business. For some non-core businesses, one is to gradually reform it so that it can enter the listed company, and the other is to reform it through the separation of the main and auxiliary policies. In addition, asset management companies can also take over.
Regarding the reorganization of central enterprises, Shao Ning said that the direction of the reorganization of central enterprises will remain unchanged and will continue to advance. However, relaxing the time limit does not force 80-100 households to be done at the end of last year. Our goal is to achieve a good allocation of resources through restructuring, with good results, and the quantity is not a very important issue.

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