The central State-owned
enterprises (SOEs) that fail to position themselves among the top
three in their respective industries in the next three years will
be compulsorily reshuffled by the government, said Li Rongrong,
director of the State-owned Assets Supervision and Administration
Commission (SASAC), the Shanghai Securities News reported on
Wednesday.
SASAC will rate and rank
central State-owned enterprises (SOEs) based on a composite index,
including profits, cost-control ability, core business profits,
research and development expenses, as well as rates of?value
maintenance and increment.
Li suggested that the administration will focus on
SOE performance but not size.
At the end of last year, SASAC published opinions
on promoting a State-owned assets adjustment and SOE's reshuffle,
in which 155 central SOEs will merge into 80 to 100 SOEs by the
year of 2010.
Another document guiding the central SOEs' reform
is expected to be unveiled very soon. It will contain more specific
explanations and assessment?criteria for the reform.
Li also said the appraisal of the central SOEs'
heads for their first tenure, between 2004 and 2006, will be
concluded in September. At the same time, appraisal contracts for
the second tenure, from 2007 to 2009, will be inked.
(Chinadaily.com.cn August 31, 2007)
