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SASAC to Find solutions for SOEs That Have Financial Trouble

Recently, Xinhua reported on a news conference that the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) held. According to Xinhua, 12 SOEs went through restructuring in 2015. More SOEs will go through the merger and acquisition process in 2016. The article also said that SASAC is determined to spend the next three years finding a solution for 345 SOEs that are in financial trouble. It will also bring down the production volume in the coal mine and steel industries by 10 percent in the next two years. Another proposal to improve the profitability and efficiency of the SOEs is to reduce the number of management levels to no more than 3 or 4 levels while striving for lean and efficient management during the upcoming SOE reforms.

Source: Xinhua, May 23, 2016