Gao Yan, general manager of China's Power Company, recently said that China would take advantage of the present opportunity offered by a balanced supply and demand on the electric power market to conduct strategic structural readjustment.

He said that on the premise of maintaining the control power of the state-owned economy, the power industry should actively explore reform in diversifying stock rights through reorganization of assets. This aims to expand the functions of the state capital, further enhance the control power, influence and actuation of the state-owned economy,

He stressed that the company would intensify structural readjustment in the following aspects. First, adjusting the investment structure in increment to bring about diversification of investment as the mainstay. Funds should be used first in the development of key power grids, the revamping of urban and rural power grids and optimization of the structure of power sources and tapping the resources of the western region in close coordination with the strategy for large-scale development of the western region.

Second, adjusting the asset structure to bring about the diversity of equity, speeding up entry into the internal and international capital markets to promote capital flow and security orientation.

Third, vigorously boosting technology innovation and industrial upgrading to achieve equipment and technology modernization.

Fourth, adjusting the company's organizational set-up to bring about institutional, mechanism and management innovation as well as an intensive mode of operation. The core of the adjustment is to set up a scientific system to operational mechanism meeting the requirement of strategic management, reduce transaction cost and optimize the allocation of resources to the maximum.