Deepening regional trials of comprehensive reform of state-owned assets and SOEs is not only a major special project for SOE reform, but also an important reform task in the three-year campaign for SOE reform. In July 2019, the State Council Leading Group for SOE Reform decided to designate Shanghai and Shenzhen as the first batch of pilot zones for comprehensive reform, and Shenyang was selected to carry out the reform in key areas and key links of state-owned assets and SOEs. More than a year on, how is the progress and effectiveness of the reform?

"The Party committees and governments of Shanghai, Shenzhen and Shenyang have attached great importance to the regional comprehensive reform experiment, and achieved remarkable results in improving the system, optimizing the structure and stimulating vitality." A few days ago, Weng Jieming, deputy director of the State-owned Assets Supervision and Administration Commission of the State Council, introduced the relevant progress of the comprehensive reform test to reporters.

-- The state assets supervision and control system, which mainly focuses on capital management, has become more mature and established.

"According to the authorization of the Shanghai Municipal Government, we perform the responsibility of investor for state-owned assets belonging to the city. State-owned assets in such operational fields as entities, finance and sports are directly supervised by the SASAC. At present, the assets, revenues and profits of enterprises under direct supervision account for more than 90 percent of the total amount of state-owned assets and state-owned enterprises under municipal management." Sasac, deputy party secretary of Shanghai Dong Qin said that in recent years, Shanghai has built three international, Shanghai sheng, Shanghai international trust &investment state-owned capital investment, operating company, perfect "finance + operation + investment" of state-owned capital management system, build the "1 + 3 + N" state-owned capital regulatory framework, promote physical, financial and other business assets integration and development.

-- The market-based operation mechanism will be improved, and micro-entities will be more dynamic.

"In the trial reform, we have made great efforts to overcome institutional obstacles and overcome the four key links of property rights reform, corporate governance, personnel selection and appointment, and incentives and constraints." Yu Gang, Secretary of the Party Committee and Director of Shenzhen SASAC, introduced the mixed ownership reform from four aspects: the mixed ownership reform highlights the "introduction from outside to inside", focuses on promoting the mixed ownership reform of commercial enterprises, innovates to carry out the shareholding of management and core backbone, and now the mixed ownership ratio of municipal enterprises reaches 83.5%; Corporate governance highlights "effective checks and balances", and guides enterprises to establish a standard board of directors with scientific collocation and professional complementarity of internal directors, full-time outside directors and part-time outside directors; In the selection and appointment of personnel, we have carried out market-based selection and appointment and contractual management for members of the management teams of 10 directly managed enterprises and 123 secondary and tertiary enterprises. The incentive and restraint mechanism highlights "rigid assessment". The pay difference of the same rank in the same enterprise is as high as 50%, and 25 members of the management are subject to rigid exit. Compared with before the reform test, Shenzhen's total state assets increased by 31.8 percent, its operating income increased by 59.1 percent and its total profit increased by 25.8 percent, Yu said.

-- Further progress was made in adjusting the state economic structure and optimizing the allocation of state capital.

Shanghai's new investment will focus on strategic emerging industries, advanced manufacturing, modern service industries, infrastructure and people's livelihood, according to the major development strategy of serving the city and the integration of the Yangtze River Delta. With the development of the Guangdong-Hong Kong-Macao Greater Bay Area, Shenzhen has basically formed a "one body and two wings" state capital structure, with infrastructure and public utilities as the main body and finance and strategic emerging industries as the two wings, based on the city's state capital service function. Shenyang accelerated the basic solution of historical problems, led by the State-owned Assets Supervision and Administration Commission of the city and coordinated by multiple departments, to promote the collective reform of large factories, complete the socialized management of retirees of state-owned enterprises, and realize the basic elimination of "zombie enterprises".

In December 2020, the State-owned Enterprise Reform Leading Group of the State Council decided to list Hangzhou, Wuhan, Xi 'an and Qingdao as the second batch of comprehensive reform pilot zones. Meanwhile, the special reform work in Shenyang was promoted to the leadership of Liaoning Provincial Party Committee and provincial government, covering the comprehensive reform experiment in Shenyang and Taiping Bay Cooperative Innovation Zone. Weng Jieming said that the comprehensive reform pilot zone should seek a breakthrough in the comprehensive reform, seek to deepen in the characteristic reform, make a demonstration in the advance reform, focus on improving the system and stimulate the vitality to overcome difficulties, and lead the overall reform of state-owned enterprises with the advance reform experience.

Source: State-owned Assets and Administration Commission of the State Council