Guiyang SASAC boosts SOE development

Guiyang State-owned Assets Supervision and Administration Commission, or Guiyang SASAC – located in Guiyang, capital of Southwest China's Guizhou province – is reportedly continuing to boost the development of local State-owned enterprises, also known as SOEs.

That's in the wake of its considerable success in recent years. During the 13th Five-Year Plan period (2016-20), enterprises under the commission's direct control achieved total revenue of 104.6 billion yuan ($16.19 billion), with average annual growth of 17.6 percent.

During the 13th Five-Year Plan period they reported total profits of 14 billion yuan – surging 55.1 percent on the previous year.

To top it off, despite the COVID-19 pandemic in China, in 2020 they generated total revenue of 31.94 billion yuan, up 42.8 percent from a year earlier.

As the year of 2021 marks the 100th anniversary of the founding of the CPC and a starting year of the 14th Five-Year Plan period (2021-25), Guiyang SASAC is understood to be planning to continue to roll out and implement a variety of measures.

It is reported that local authorities will deepen their reforms of SOEs, optimize the supervision system of State-owned assets and improve the utilization of State-owned capital.

Guiyang SASAC first downsized the number of its enterprises directly under its management – as opposed the much larger number of companies of all kinds that are under supervision – to 10 in 2018. It then established Guiyang's first non-financial State-owned enterprise with an AAA credit ranking in August 2019. In response, local SOEs responded positively.

At the same time, Guiyang is also pushing for State-asset supervision by focusing on capital management and strengthening financial monitoring of enterprises' operations.

Within two years, it is expected that Guiyang SASAC will have completed organically coordinating institutions, systems and rights and responsibilities – an initiative begun in November 2020.

Also, under the new plan, new philosophies of development will be implemented to advance Guiyang's supply-side structural reform.

In addition to introducing a pilot incentive for stock rights for the first time in Guizhou, Guiyang SASAC is reportedly striving to attract various new investors.

At the end of 2020, the number of share market-listed enterprises supervised by Guiyang SASAC amounted to five, including Guiyang Bank and Guizhou Gas Group Co.

Meanwhile, a total of 249 uncompetitive enterprises administered by Guiyang SASAC were shut down in 2020.

It is widely known that SOEs always try their best to fulfill their corporate social responsibilities. For example, last year the first-phase construction of the Jiangjunshan Hospital was completed within 15 days for early treatment in the wake of the COVID-19 pandemic; a total of 86 poverty-relief programs have been spread to some 37 remote areas; 471,900 metric tons of agricultural products were sold efficiently last year; while local enterprises have sought out first-tier technology.

Elsewhere, Party building has continued in companies supervised by Guiyang SASAC.

Guizhou Tyre Co reportedly took the initiative to integrate Party building and its business, and produced more than 6.58 million tires in 2020, up 10 percent on the previous year.

Looking forward, Guiyang SASAC plans to synthesize its many advantages in management, competitiveness and development and seek higher-quality development.