In this undated photo, a worker prepares a steel frame for an expressway bridge in Youxian county in Hunan province of China. (LI AIMIN / FOR CHINA DAILY)
BEIJING – China's cabinet has said more work should be done to advance the restructuring of centrally-administered state-owned enterprises (SOEs).
Since 2013, 32 central SOEs have been restructured, including a merger between two top bullet train makers and two major steelmakers
The country should steadily push for the restructuring of central SOEs in equipment manufacturing, coal, electricity, communications and chemical industries, according to a statement released Wednesday after an executive meeting of the State Council. Premier Li Keqiang presided over the meeting.
Apart from asset restructuring, central SOEs can also direct their resources towards competitive companies or industries through equity cooperation, asset swaps, strategic alliances and joint development, the statement said.
It said the task of reducing excess capacity should be strictly implemented, with more progress to be made in dealing with "zombie companies" and loss-making enterprises.
Debt-to-equity swaps will be conducted in a market-oriented and law-based manner, the statement said.
It also noted that reform will be advanced to allow private capital in the restructuring of central SOEs.
READ MORE: China's SOE reform makes headway
Since 2013, 32 central SOEs have been restructured, including a merger between two of China's top bullet train makers and that between two major steelmakers.
The central SOEs that have completed restructuring saw their combined profits jump more than 40 percent in 2016 from 2012, with lower costs and higher efficiency, according to the statement.