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China plans more post-Olympics reforms for SOEs

(Xinhua)
Updated: 2008-08-11 09:10

A Chinese official said on Sunday that after the Olympics, the government would intervene in the consolidation of centrally-administered State-owned enterprises (SOEs) instead of letting them regroup on a voluntary basis.

The Olympics wrap up in late August and the Paralympics finish in mid-September.

"The target of reducing the total number of centrally-administered SOEs to 80 to 100 by 2010 is unchanged," said Li Rongrong, chairman of the State-owned Assets Supervision and Administration Commission (SASAC), at a press conference at the Beijing International Media Center.

There were 149 such SOEs at the end of 2007.

He said the SASAC made the decision because many centrally-administered SOEs had no national economic security role and should compete in the market.

The centrally-administered SOEs made great contributions to building venues and supplying power and oil to the Games. They had also offered expertise and innovation in the space program and the development of the new fighter jet, the J-10, he said.

Amid fluctuating global oil and raw material prices and especially during the harsh winter and the disastrous quake in Sichuan this year, many such enterprises sustained losses to keep domestic prices stable.

Li said the SASAC had no plan at present to regroup the five State-owned power companies. However, it would speed up the rationalization of State-owned real estate companies to no more than 15.

He said the central government would remain the dominant shareholder of these SOEs and these enterprises should "make positive contributions" to the healthy development of China's stock market.