SASAC's Responsibilities & Targets

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Last updated at: (Beijing Time) Thursday, May 22, 2003

SASAC's Responsibilities & Targets

The State-owned Assets Supervision and Administration Commission (SASAC) of the State Council takes responsibilities as investor of state-owned assets on behalf of the central government and aims to strengthen the management of state-owned assets in nine fields, said SASAC Director Li Rongrong in Beijing on Thursday.

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The State-owned Assets Supervision and Administration Commission (SASAC) of the State Council takes responsibilities as investor of state-owned assets on behalf of the central government and aims to strengthen the management of state-owned assets in nine fields, said SASAC Director Li Rongrong in Beijing on Thursday.

SASAC's responsibilities

The State-owned Assets Supervision and Administration Commission (SASAC) of the State Council takes responsibilities as investor of state-owned assets on behalf of the central government, said SASAC Director Li Rongrong in Beijing on Thursday.

At a press conference held by the Information Office of the State Council, Li said SASAC was founded to shoulder responsibilities of the former State Economic and Trade Commission in guiding state-owned enterprises' reform and management, responsibilities of former Work Committee of Enterprises of the Communist Party of China Central Committee, responsibilities of the Ministry of Finance relating state-owned assets management, and part of responsibilities of the Ministry of Labor and Social Security.

SASAC guides and pushes the reform and restructuring of state-owned enterprises, as well as supervises the maintenance and appreciation of state assets value for those state-invested enterprises, Li said.

SASAC dispatches the supervisory board to some large enterprises on behalf of the state and takes charge of daily management of the supervisory board, he said.

SASAC appoints, removes and evaluates the executives of enterprises through legal procedures and grants rewards and punishments according to their performances, he said.

SASAC drafts laws, administrative regulations and related ruleson the management of the state-owned assets, and directs and supervises the work of local state-owned assets management according to law, he said.

SASAC undertakes other tasks assigned by the State Council, he said.

SASAC's targets for government assets management

The Chinese government was to strengthen the management of state-owned assets in nine fields, a senior official said.

Li Rongrong, director of the newly founded State-owned Assets Supervision and Administration Commission, told a press conference Thursday morning that the measures were designed to speed up restructuring of state-owned economy and push forward reform of state-owned enterprises.

The first focal area of state-owned assets management was to develop and perfect relevant laws and regulations, Li said. The country will soon put into force a tentative Statute on the Supervision and Administration of State-owned Assets of Enterprises. Li said China will formulate other relevant rules and regulations on the basis of this statute.

The second focal area was to set up supervising and administrative bodies of state-owned assets at three levels, from the central government down to provincial and city governments.

The third area was to set up an accountability system for management of state-owned assets. The government was developing criteria for assessing the performance of state-owned enterprises, their capital and managers.

The fourth area was to perfect the system of authorizing investment entities and large-scale companies or enterprise groups with the management of state-owned assets. In addition, the country would continue to explore effective ways and systems of managing state assets.

The fifth area was to continue to convert state-owned enterprises to a modern enterprise system by introducing diversified ownership, perfecting corporate governance and listing some of them on overseas stock markets.

The sixth area was to develop new systems of selecting and appointing management of state-owned enterprises and new incentive and obligation systems for managers.

The seventh area was to accelerate the strategic restructuring of state-owned economy. The government planned to close down all the state-owned enterprises that were now actually bankrupt according to government criteria in the next five years.

The eighth area was to set up an effective supervision and discipline system for state-owned enterprises. The government would perfect the practice of setting up supervision board at state-owned enterprises.

The last area was to improve the moral of the state-owned enterprises through ideological advance.

SASAC to manages 6.9 trillion yuan of state-owned assets

China's newly founded state-owned assets commission will supervise and manage a total assets of 6.9 trillion yuan (about 833.6 billion US dollars).

Li Rongrong, director of the newly founded State-owned Assets Supervision and Administration Commission of the State Council (SASAC) briefed a press conference here Thursday.

The supervision and management scope of SASAC are the assets of those enterprises directly subordinate to the central authorities, said Li.

Li said at present, SASAC directly supervises and manages 196 enterprises that own a total of 6.9 trillion yuan of assets and represents 2.5 trillion yuan of owner's equity right.

Li said besides the state-level commission, China also set up state-owned assets supervision and administration bodies at the provincial and municipal levels.

Both the state-level and the local-level commissions will fulfill the responsibilities of investors of state and local assets authorized by the State Council and the local government, said Li.

Apart from fulfilling the responsibility of state assets' investors, the SASAC is also in charge of guiding and supervising local-level state-owned assets management according to law, Li added.

Li said all local authorities of the state-owned supervision and administration must strictly implement laws and regulations concerning state-owned assets supervision and administration.

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