New moves to tighten oversight at SOEs

Recently issued accountability measures for centrally-administered State-owned enterprises will strengthen responsibility as well discipline in corporate management and investment, helping SOEs and State capital achieve steady growth, a spokesperson for the State-owned Assets Supervision and Administration Commission of the State Council said.

The Implementation Measures for Accountability in Cases of Irregular Business Operations and Investments by Central State-owned Enterprises will take effect from Jan 1.

The government has called for an accountability framework that is comprehensive, with clearly defined responsibilities, transparent procedures and orderly execution, and for a more coordinated and efficient supervision system for State assets.

Against this backdrop, SASAC has drafted the measures after extensive research.

It sought ideas from all central SOEs and relevant central government bodies, consulted with the National Development and Reform Commission and other administrative bodies, and invited public comments before it was repeatedly revised.

Yi Xuedong, director of SASAC's Research Center, said central SOEs are the ballast of the national economy and the main force in building a modern industrial system.

Yi noted that only by continuously deepening reform of State assets and SOEs, and building and improving a modern corporate system with Chinese characteristics, can solid support be provided for stable, healthy economic performance and for meeting people's aspirations for a better life.

The document instructs investigators to look beyond surface-level violations and probe possible embezzlement of State assets, abuse of power for personal gain and illicit transfer of benefits. Clues suggesting disciplinary breaches, duty-related violations or crimes should be referred to the relevant authorities in line with regulations.

The implementation measures have set out specific scenarios in which managers at central SOEs who breach rules or fail to perform their duties properly, leading to losses of State assets or other adverse outcomes, will be held accountable.

It lists 98 accountability scenarios across 13 areas, including group-level control, risk management, procurement and sales, project contracting and construction, financial operations, science and technology innovation, cash management, property rights management, fixed-asset investment, equity investment, restructuring and reorganization, and overseas operations and investment, among others.

The document also classifies losses from irregular operations and investments, saying losses under 5 million yuan ($700,000) are "general", losses from 5 million yuan to under 50 million yuan are "large", and losses of 50 million yuan and above are "major".

SASAC said it will further standardize, refine and legalize accountability work, building a mechanism that is comprehensive, clearly assigned and procedurally transparent. By enforcing targeted accountability, it aims to steer central SOEs toward high-quality growth under the rule of law and in full compliance.

In addition, SASAC will pair the rollout with case-based guidance, training and policy interpretation, and will urge central SOEs to improve internal rules to ensure timely responses, precise remediation, credible deterrence and stronger compliance.

Under SASAC's guidance and example-setting, central SOEs have tightened investigations into irregular operations and investment, strengthened the accountability framework, and raised adherence to lawful, compliant management, the spokesperson said.

Accountability work on irregular operations and investment aligns with relevant laws and regulations, follows the logic of State-asset oversight and fits operational realities. It has helped strengthen supervision of State assets, ensure their preservation and appreciation in value, and prevent the loss of State assets, the spokesperson added.