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China is to make further efforts to establish and perfect the management and supervision system of state-owned assets, to promote modern corporate management mechanism and to accelerate reform of monopolized industries.

This was included in a decision on issues regarding the improvement of the socialist market economic system passed at the Third Plenum of the 16th Central Committee of the Communist Party of China (CPC), which was held on Oct. 11 to 14.

Government institutions should clearly separate the public administrative functions from functions of ownership of state assets, said the decision which was released Tuesday.

State-owned assets management organizations are responsible to protect the rights and interests of state-owned assets, to guard the legal rights enjoyed by state-owned enterprises as market entities, to impel state-owned enterprises to make profits, and to prevent the loss of state-owned property.

China is also to improve its supervision systems over state- owned banking assets, non-profit-making assets and natural resources.

According to the decision, a modern corporate management mechanism, with standardized rights and liabilities taken by various boards of shareholders, directors, inspectors and managers, should be set up in state-owned enterprises.

The general meeting of shareholders is entitled to decide the board members of directors and inspectors. The board of directors takes charge of selecting managers, who are responsible for hiring employees and the balance among the power, decision-making, supervision and business operation departments within the enterprise, according to the document.

Party committees within enterprises are required to play a core role in political functions, but with improved working methods better accommodated to the modern management structure in state- owned enterprises.

Both the central and local party committees should strengthen and improve their management over senior managers of the country's backbone state-owned enterprises.

Based on a whole-hearted reliance on employees and workers, state-owned enterprises should actively explore effective democratic management approaches to protect the legal rights and interests of employees.

The decision called for continued efforts in improving the employment and salary distribution systems of enterprises, resettling surplus workers and parting social functions from state- owned enterprises, which will create a sound environment for enterprises' reform and development.

The decision also called for acceleration in expanding market access to monopolized industries and introducing competition mechanism and diversified ownership forms to monopolized industries. Further reform measures should be adopted in the fields of telecommunications, electric power, civil aviation, railway transportation, post service and public utilities. 甅DNM

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