Guiyang pushes forward SOE reform

The year 2020 is the year in which China is set to achieve its poverty relief target, become an all-round well-off society, and fulfill the country's 13th Five-Year Plan (2016-20). It also marks a crucial year for Guiyang's high level and high quality development.

The State-owned Assets Supervision and Administration Commission of Guiyang (SASAC of Guiyang) has prioritized the development and reform of its supervised State-owned enterprises (SOEs) in the process of pushing forward supply-side structural reform.

Supported by SASAC of Guiyang, Guiyang Industrial Development Holding, with a credit rating of AAA, has issued bonds with interest rates lower than the market price.

In addition to boosting investment in productive assets and equities, SASAC of Guiyang is also urging the SOEs under its control to set up fund firms and bonding companies to revitalize stock assets concerning cultural tourism and water utilities.

With a focus on SOE canteens, the Guiyang SASAC also has stepped up efforts to facilitate effective link-ups between agricultural products and enterprises, encouraging direct transport, supply and sales of Guizhou's agricultural products.

These efforts help greatly improve SOEs' purchase of local agricultural products, popularize the "central kitchen" supply model, and standardize the supply criteria for group meals.

Efforts will be made to optimize local SOEs' organizational structures, reduce management hierarchies and legal entities, and promote a development pattern featuring flexible business models. Business survival will be determined by competition, specialized business operations and effective management, with the aim of enhancing development quality and economic profits.

In addition, the Guiyang SASAC will support a local water company in going public, as well as drive the mixed ownership reform of Guiyang Yongqing Instruments & Electronics Science & Technology Co, which has been included in China's fourth batch list of mixed-ownership SOE reforms.