SASAC calls on major SOEs to strengthen internal control

Source:Global Times Published: 2019/11/14 21:53:40

A tanker waits to be loaded with liquefied natural gas (LNG) at the Rudong LNG terminal of China National Petroleum Corporation (CNPC), in Rudong, East China's Jiangsu Province. CNPC intends to quadruple the capacity of its Rudong LNG terminal to 26 million tons each year. Since the terminal was put into use in May 2011, it had received a total of 20.8 million tons of LNG shipped from 22 countries and regions as of Friday. Photo: IC





China's top state asset regulator on Thursday called on centrally administered state-owned enterprises (SOEs) to improve internal control, so as to fence off risks amid a prolonged trade war and mounting downward pressure.

Central SOEs should seek more efficient supervision on operations, including major businesses, operational links, key overseas assets, according to an implementation guideline issued by the State-owned Assets Supervision and Administration Commission (SASAC) on Thursday.

The guideline stresses the importance of rolling out more stringent accountability measures and making clear the risk-management responsibility of executives of the enterprises.

Information technologies will be taken as important means to improve internal controls. Information systems will be integrated to reduce human errors, said the guideline.

Wan Zhe, chief economist with the International Cooperation Center of China's National Development and Reform Commission, said robust audit systems are the essence of modern corporate governance.

Yuan Fuhua, an expert at the Chinese Academy of Social Sciences, told the Global Times that strengthening internal controls of central SOEs is especially critical at a time when the nation is seeking a balance in curbing inflation and maintaining growth momentum.

The key to curbing inflation is to control asset prices and growth that depends on debts, Yuan said, adding that as the dominant players in key areas like infrastructure, energy and finance, major SOEs are the key "safety valves" for national economy.



Posted in: ECONOMY

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