(Yicai Global) May 11 -- The State-owned Assets Supervision and Administration Commission will minimize direct interference in companies' internal reorganizations and will stop regulating holders of state-owned shares in publicly companies, per an SASAC document that was publicized by the State Council, China's cabinet.
The commission will fulfill its obligations as a capital contributor on behalf of the State Council, but will not hamper enterprises' autonomy, the document said.
SASAC will reduce its involvement in remuneration management for senior managers at state-owned enterprises, and will instead focus on post-decision filing and compliance guidance, the document said. SASAC will cut its role in companies' financial management and shift its attention to overall financial status supervision.
A combination of party supervision and market-based mechanisms should be used to guide SOE senior managers. Party committees should play a leading role in manager selection.