Shanghai releases reform plan for state-owned enterprises

Eyes focus on reforms targeting the country's vast number of state-owned enterprises which is also coincidently among the top priorities of the country's most recent economic plan.

According to the guidelines, local governments will centralize more than 80 percent of its state-owned assets in strategic emerging industries as well as advanced manufacturing and service industries.

It also plans to diversify investment sources and speed up the listing of companies. State firms will have to pay at least 30 percent of their earnings to the state by 2020. The money will be used for industrial restructuring, infrastructure construction and social security. Enterprises will be divided into three groups under different categories.

In the past, the State-owned Assets Supervision and Administration Commission were in charge of the management of assets, human resources and businesses. But in the future, this management role will be gradually taken over by those who actually run the business.