The legislative work for China's state-owned assets supervision had scored results. So far, the state-owned assets supervision and administration commission (SASAC) of the State Council has formulated and issued 15 regulations and more than 30 pieces of normative documents. SASAC of all provinces and cities have formulated a total of more than 1,200 pieces of local regulations and normative documents, and they initially formed a legal system for state-owned assets supervision and administration with Regulations on Supervision and Administration of State-owned Assets of Enterprises by the State Council at the core.

“The initial formation of the legal system for state-owned assets supervision and administration has legislatively built the basic framework of state-owned assets management system and has promoted the establishment and perfection of a new state-owned assets management system,” said Huang Shu, the deputy director of SASAC of the State Council.

After the establishment of the state-owned assets supervision and administration legal system, the organizing principles, functions and responsibilities of SASAC of all levels have been clearly identified and three-level state-owned assets supervision and administration organizational system is legally promoted. So far, SASAC of 31 provinces, autonomous regions and municipalities and the Xinjiang Production and Construction Corps, have all legally finished the organizing work, and SASAC of all cities (districts) have basically completed this work, too. The three-level SASAC have been basically developed.

On one hand, the laws and regulations of state-owned assets supervision and administration have further standardized the relationship between SASAC and their funded enterprises and the management of assets, human resources and events, and have legally identified the responsibilities for value maintenance and increase of state-owned assets of enterprises. On the other hand, these laws and regulations have provided a legal guarantee to the preventing of state-owned assets loss and the protection of investors’ interests, standardized processes like state-owned enterprise transformation and property right transfer, and initially established, from the aspects of system, mechanism and management, a system framework to prevent state-owned assets loss and protect the interests of state-owned assets owners.

In order to accelerate the pilot projects of board of directors of companies of sole state ownership, share merger reform, shareholding system reform, the merger and reorganization of enterprises, state-owned economic layout and structure adjustment, SASAC of the State Council and all provinces developed specific regulations so that there are specific standard and operational rules in the reorganization of state-owned enterprises and the restructuring of state-owned economic layout. Under the joint efforts of SACAC of all levels, the legislative progress of a group of laws and regulations for state-owned assets management system and state-owned enterprise reform has been sped up.

For the next step, the SASAC of the State Council plan to spend two to three years on the further improvement and perfection of the legal system of state-owned assets supervision and administration and to set a more solid legal foundation for the further deepening of state-owned assets management system reform and the promoting of the reform and development of state-owned enterprises.