SHANGHAI, June 16 Four companies owned by the
Shanghai government will become the first to participate in a
pilot ownership reform programme aimed at transferring stakes to
staff members, the local government said.
China is embarking on a series of sweeping ownership and
management reforms aimed at making its sclerotic and debt-ridden
state sector more responsive to the market.
As part of the restructuring plans, the State-Owned Asset
Supervision and Administration Commission (SASAC) said last year
that staff in key positions, including managers and scientific
researchers, would be granted stakes in government-run firms.
The Shanghai state asset regulator said on Thursday that it
had chosen four units of local government-owned enterprises to
begin the pilot programme, and urged them to draw up detailed
plans, audits and risk assessments.
The firms include the Shanghai Electric Guoxuan New Energy
Technology Co Ltd and the WeHotel Co Ltd. Also on the list is
the Shanghai Jiushi Wisdom Sports Co Ltd, owned by the Shanghai
Jiushi Group, a local public transportation operator, and the
Shanghai New Jinqiao Environmental Protection Co Ltd.
According to guidelines published last year, individual
staff members will be granted no more than 1 percent of shares,
and the total amount of holdings granted to staff members must
not exceed 30 percent of the company.
To avoid corruption risks, the guidelines ban senior
government, company or Communist Party officials from
participating in the share ownership scheme.
(Reporting by David Stanway; Editing by Edwina Gibbs)