(File photo)

A guideline on state-owned enterprises (SOEs) reform has finally been approved by the central government, and will be officially released  in near future, according to press release of the State-owned Assets Supervision and Administration Commission (SASAC) published on its official Weibo account on Monday.

The guideline has set a clear schedule for this round SOEs reform that progressive achievement shall be made in critical fields of SOE reform by 2020. Corporatization shall be basically complected and a number of core SOEs with international competitiveness shall be cultivated by the same year.

China will set up several state-owned capital operating companies as the important platforms of SOEs reform in next step on the basis of the SOEs classification.

It means that Singapore's "Temasek-style" SOEs reform will play an important role in the next-step reform. The SASAC will no longer directly intervene in the running of most SOEs. Its role will shift from "management of assets" to "management of capital".

Insiders from state-woned enterprise told Economic Information Daily that massive assets are likely to be cleared out, merged or reconstructed, mainly through the transactions of securities and property rights, based on the market-oriented guidance for the SOEs. The government functions will be separated from enterprises and market-oriented operation system of enterprises will be set up.

“Asset securitization will be accelerated in the future.” Zhao Huan, the analyst with Fortune Securities Co., Ltd. said. The securitization ratio of the state-owned assets is less than 30 percent at present. It is estimated that there will be 30 trillion yuan of state-owned assets that could be injected into stock market in the next several years.

This article was edited and translated from 《深化国企改革指导意见获通过》, source: Economic Information Daily.