City pledges efforts to promote SOE reform
Shanghai has pledged to make efforts to promote the reform and development of state-owned enterprises in accordance with China's three-year plan for SOE reform.
Since the 19th National Congress of the Party, Shanghai has achieved higher-quality and more efficient development of the state-owned economy, with continuous improvement in the system and mechanism of state-owned assets supervision and control, said Dong Qin, deputy Party secretary of the Shanghai State-owned Assets Supervision and Administration Commission.
Dong outlined some major achievements in Shanghai's reforms of state-owned assets and state-owned enterprises on Thursday.
New progress in SOE reform
So far, 87 state-controlled enterprises in Shanghai have been listed on domestic or overseas markets, with a total market value reaching 2.77 trillion yuan (US$428.7 billion), among which the shares held by the state are worth over 1 trillion yuan.
Meanwhile, reform of the salary system for professional managers in 17 enterprises had been completed, and 81 cases of equity and bonus incentives implemented in systematic enterprises.
New achievements in economic growth
Six SOEs in Shanghai have made the 2020 Fortune Global 500 list — SAIC Motor, Greenland Group, China Pacific Insurance, Pudong Development Bank, Shanghai Construction Group and Shanghai Pharmaceuticals Holding.
Meanwhile, five enterprises — Shanghai International Port Group, Shanghai Shentong Metro Group, Jin Jiang International, Shanghai Airport Authority and Greenland Group — ranked among the global top three in their industries.
"The city's SASAC system has basically formed a development pattern dominated by the mixed-ownership economy," Dong said.
Mixed-ownership enterprises in Shanghai accounted for about 75 percent of the total number of enterprises, contributing around 87 percent of total assets, 90 percent of operating income and 100 percent of net profit.
Some 85 percent of new investment was concentrated in strategic emerging industries, advanced manufacturing, modern services, infrastructure and livelihood security.
Shanghai's plan for SOE reform
In December last year, the city released a series of measures to promote SOE reform.
For instance, SOEs should promote construction of the Lingang new area of the pilot free trade zone and the demonstration area in the Yangtze River Delta on ecologically friendly development.
They should also cultivate a number of sci-tech innovative companies in line with national strategy and of high market recognition, with the aim of getting around 10 enterprises newly listed on the STAR Market on the Shanghai Stock Exchange.
Shanghai highlighted the importance of deepening mixed-ownership reform. The city will support and guide state-owned listed companies with a high proportion of state-owned shareholders to introduce more strategic investors as active shareholders, leading them to participate in corporate governance.
The city will also speed up optimizing the market-based operating mechanism, and in the meantime improve the long-term incentive and restraint mechanism, such as the systems of job evaluation, salary and equity incentives.