China encourages central SOEs to expand effective investment
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.
Net profits at China's centrally administrated state-owned enterprises (SOEs) rose 35.71 percent to 1.9 trillion yuan (about 279.8 billion U.S. dollars) in 2022 from that achieved in 2020, official data showed.
Meanwhile, the operating revenues of China's centrally administrated SOEs increased 30.03 percent from 2020 to reach 39.4 trillion yuan in 2022, according to data from the country's SOE 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.The action plan has led to all-out efforts and numerous breakthroughs in key areas, including optimizing the modern enterprise system and the market-oriented operation mechanism.
A relevant policy mix is in the pipeline, said the commission.
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