In the "Report on supervision over state-owned assets and reform of state-owned enterprises" made by Li Rongrong, Director-general of the Commission for Supervision and Administration of State-owned Assets under the State Council to the supreme legislative organ of China on 26 April he made a sum-up of the four major manifestations in which the state-owned assets are washed away and the three aspects of work to be carried out for the prevention from their being washed away.

The four major ways at present in which the state-owned assets evaporated are: first and foremost, the transfer of the state-owned assets hasn't entered completely into the market. Secondly, it has witnessed a prominent problem of property right transfer to the administrative level. Thirdly, the inside and the outside hand in glove, they make a low evaluation of the state-owned asset for a cheap sale. Fourthly, they deduct the economic compensation for employees and other costs from the net price of the state-owned assets to be transferred, thereby making lower the price for the property right transfer.

In this regard, it is necessary to do well the three aspects of work as Li Rongrong put forward and they include: to sum up the experiences in the system reform and property right transfer of the state-owned assets, and then to study and work out standardized rules and regulations with regard to the problems; to carry out supervision and examination as to the system reform and transfer of the property right of the state-owned asset and check and penalize the cases that have violated the laws and the rules; and finally step up the construction of the organizations for property right transaction and strengthen the supervision over the property right trading.

Lessons have to be drawn from the event as occurred in the China Aviation Oil Co., pointed out Li Rongrong in his report in order to exercise a tighter supervision over the state-owned enterprises in overseas. At present, an investigation work for making clear the situation of the central-run enterprises of high risks in order to prevent them from entering into the highly dangerous areas. In the meanwhile, to make an active study and try to work out as quick as possible the methods for the supervision over the state-owned enterprises in overseas, administration and management of the subsidiary enterprises and events of great importance and to look into the mishaps and malpractices of importance in decision-making done by their responsible persons.

By People's Daily Online