Xiao Yaqing:

Thank you Ms. Huang for your answer. I would like to add that expanding these enterprises is a goal of the restructuring, but it's not the most important one. The problem is that dozens of enterprises are competing in the same industry, thus causing heavy friction between them. However, reducing the overall number is not the most important goal, either.

I think what really matters is developing enterprises that the domestic and international markets need. You mentioned CRRC, which is a large Chinese enterprise. But some world-famous companies, such as Siemens and Alstom, are undergoing restructuring as well. So the development of technology and markets constitutes the strongest driving force behind the restructuring of central SOEs, and we need to adjust the enterprises in line with this development.

In the meantime, restructuring should be combined with reform and opening up. We hope to cooperate with all kinds of companies at home and abroad when advancing the restructuring of central SOEs. Let's work together to accomplish this endeavor. Thank you.

CGTN:

What measures have the SASAC taken to prevent the loss of state assets? What have been the results? Thank you.

Xiao Yaqing:

I am also paying much attention to this issue. Let's invite Mr. Peng to answer this question.

Peng Huagang:

Thank you. We are fully aware that preventing the loss of state assets is an important part as well as a prerequisite of SOE reform - or the reform won't achieve expected result. We can summarize our efforts on this front in the following four aspects.

Firstly, improve the institutional system. In the past two years, we have formulated and improved a total of 27 rules and regulations in monitoring state assets which has laid a solid institutional foundation for our work.

Secondly, set up a closed-loop monitoring system to find problem and address them timely. In recent years, especially last year, the SASAC has set up three monitoring bodies during its functional transformation so that they can synergize with other bodies to facilitate the cycle of investigation, rectification and punishment.

Thirdly, strengthen the supervision in key sectors, in especial, SOEs mergers, equity transactions, and important investment. The supervision of overseas management has been highlighted in our supervision in recent years. We have taken many methods to strengthen the supervision of overseas management of SOEs systematically.

Fourthly, promote SOE's management and investment accountability. Last year, we established a mechanism to investigate and punish SOE management based on investment accountability. We have already investigated and punished relevant officials in the cases of huge losses of state-owned assets in China Railway Materials Company Ltd. and the Metallurgical Corporation of China Ltd according to the mechanism.

Strengthening the supervision of SOEs and preventing the loss of state-owned assets are our major responsibility. We will transform our function and improve our supervision to prevent the loss of state-owned assets. Thank you.

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