(Yicai) June 4 -- China's central enterprises, in principle, cannot newly set up, buy stakes in nor acquire various types of financial institutions, the country’s state-owned assets supervisor said yesterday, as part of the government’s efforts to prevent and defuse financial risk.

In particular, central enterprises should not, in principle, invest in nor increase their holdings in financial organizations that only have a small effect in serving major and real businesses and which have a high risk of spillover, the State-owned Assets Supervision and Administration Commission said in a press release on its website today

The politburo of the Communist Party of China will extensively enforce its pilot provisions on the prevention and defusing of financial risks as well as uphold accountability, the SASAC said, referring to a meeting held by its Party committee yesterday.

Companies shall be held responsible as the primary entity, and all firms are being urged to implement measures to rectify risks, one by one, to keep risks at bay, it said.

Risk prevention and control work should be carried out properly and the level of informatization increased to achieve the early identification, warning, exposure and disposal of risks, it said.

Those found to be causing major risks and losses due to rule violations or malpractices will be held accountable, and all such breaches shall be transferred to party discipline and supervision bodies to be dealt with, it added.

Central enterprises across China shall be encouraged to make an in-depth analysis of the professional talent needed so as to create new employment opportunities, provide society with as many good job positions as possible and give college graduates the foundation of steady employment, the SASAC said.

Central enterprises should step up efforts to hire graduates from areas where it is difficult to find jobs and they should also help the disabled gain employment, it said. They should develop positions that match a disabled person’s skillset in accordance with the business' needs and relax the position’s requirements as much as possible to make the job role more flexible.

Big efforts shall be made to absorb rural workers, and central enterprises are urged to guarantee their salary payments and safeguard their legal rights and interests, the SASAC said.

Editor: Kim Taylor