Chinese state firms should expect more innovative improvements next year, as it was revealed that this week's meetings in Beijing resulted in united echoes of support for state-owned enterprises (SOEs) in the country.
According to the South China Morning Post, a statement released after the meetings confirmed that the focus next year's technological innovations will be on encouraging the development of the "advanced manufacturing sector."
As part of the efforts in ramping up change for the state-owned firms sector, Beijing is expected to unveil a three-year action plan within the first quarter of 2020.
This week's meetings involved talks about establishing a mechanism wherein market-oriented operations with partly mixed ownership is exemplified. Attendees agreed that state-run entities should focus on improving manufacturing segments.
China's State-owned Assets Supervision and Administration Commission (SASAC) under the People's Republic of China's State Council said it will ramp up initiatives in improving SOE capital management operations.
Chief economist at regional lender Zhongyuan Bank, Wang Jun, pointed out that China is expected to continue fostering SOEs' core competitive advantages instead of just looking into potential mergers.
Wang further reiterated that while reforms in the SOE sector will not be implemented "immediately," a "step-by-step approach" will help establish a more transparent sector that focuses on transparency.
Wang's comments came amid earlier questions from the White House regarding China's reported focus on state-owned firms. He further projected that while SOE-related concerns are not yet part of the phase one China-U.S. trade deal, these could be points of focus in the long run.
On Wednesday, multiple local outlets reported that China's SOEs that were administered by central governments saw strong profit gains during the January to November period.
According to Xinhua, the net profits of central SOEs saw the progress of five percent during the first 11 months of 2019, SASAC data revealed. The news came despite a slowing domestic and international economy.
Aside from the said accomplishments, SASAC revealed that central SOEs also successfully transferred shares amounting to 1.1 trillion yuan worth of state capital being transferred to social security funds this year.
News of the successful equity transfers came around two years after Beijing introduced a policy that called for state-held equities to be transferred to China's social security fund as part of the efforts to help improve social projects.
The said fund's key role is to ensure that potential pension shortages are resolved as soon as possible, helping reduce the concerns of people who should receive their pensions in due time.
China is expected to continue implementing reforms in the SOE circle not just to innovate manufacturing industries but also to encourage progress in the country's overall business ecosystem.
