New head for SASAC

Low-key and efficient, Zhang's six months of work in the commission has won wide support from his colleagues. His work experience in vastly different regions proves his ability at coordination and seeing the big picture, which is desperately needed for State-owned enterprise reform that involves the interests of various parties and is of strategic importance for national development.

State-owned enterprise reform entails changes in the activities of the commission in the first place. The primary task for Zhang, unprecedented for his predecessors, is to redefine the commission's duties from an almighty administrator of human affairs, management issues and assets of State-owned enterprises into a more professional supervisor of their assets only, Peng Jian'guo, a researcher with the commission, pointed out.

Huang Shuhe, vice-chairman of the commission, said at a recent news conference that SASAC is considering whether to set up some State-owned capital investment and management companies and support qualified SOEs to reorganize themselves as State-owned capital investment corporations.

"The State-owned assets supervisors at various levels will not interfere with individual enterprises' autonomy in management and the enterprises' legal persons' property rights," added Huang.

Analysts believe the commission's internal department and labor distribution will change accordingly.

Second, according to the reform plan drawn up by the CPC, the commission urgently needs to promote the development of a mixed-ownership economy in State-owned enterprise reforms by actively supporting the participation of private capital in the SOE shareholding adjustments.

Huang said: "We are debating whether to classify SOEs into different categories according to their fields and performances and make different shareholding reform plans and policies for different enterprises" to avoid the loss of State-owned assets.