China encourages central SOEs to expand effective investment

This aerial photo taken on Feb. 1, 2023 shows the construction site of an aerospace industry incubator project in Gui'an New Area, southwest China's Guizhou Province. (Xinhua/Yang Wenbin)

BEIJING, Feb. 9 (Xinhua) -- China's centrally administrated state-owned enterprises (SOEs) should expand effective investment and optimize investment layout in 2023, according to a recent circular from the country's top state-asset regulator.

While clarifying the direction of expanding effective investment, central SOEs should focus on critical areas such as major national projects, infrastructure, and strengthening and supplementing the industrial chains, said the State-owned Assets Supervision and Administration Commission of the State Council.

According to the circular, efforts should be made to promote central SOEs' investment in cultivating strategic emerging industries and upgrading traditional sectors while strengthening energy and resources security and achieving a virtuous cycle between scientific technology, industries, and financing.

The circular noted that central SOEs should increase risk management and control in critical areas while making investments and adhering to the bottom line against significant risks.

A relevant policy mix is in the pipeline, said the commission.