The State Council, China's Cabinet, recently issued measures to reform the State-owned capital authorization management system, which incorporates more central enterprises into the pilot program for State-owned capital investment or operation company and grants the companies more autonomy in management.

The main reform measures include optimizing the duty performance of the investors' representative organizations, classifying authorization and delegating power, enhancing the enterprises' capacity to execute power, improving their capital management ability and strengthening their supervision system.

According to the reform plan, State-owned investment or capital operation companies will launch capital-linked and property rights-based capital operations. State-owned capital investment or capital operation companies can have mixed ownership, and are encouraged to go public or introduce strategic investors.

And the board of directors of the State-owned investment or capital operation companies has been authorized to review and approve stock ownership incentive plan of subsidiaries.

The State-owned capital authorization management system reform is the key part of the new round of reform, and can help expedite the State-owned capital supervision system reform.

By 2022, China will basically build a State-owned capital authorization management system in accordance with the modern State-owned enterprise system with Chinese characteristics.