The State-owned Assets Supervision and Administration Commission ("SASAC") of the State Council has recently enacted and issued the Operational Guidelines for Mixed-ownership Reform among Central Enterprises (the "Guidelines").
The Guidelines clearly state that where subsidiaries of all levels affiliated to central enterprises intend to introduce non-public capital or collectively-owned capital, by means of property right transfer, capital increase to offer more shares, initial public offerings (IPOs), assets reorganization of listed companies or otherwise, to conduct the mixed-ownership reform, their relevant work shall be performed by reference to these operational guidelines. Meanwhile, the Guidelines provide that to conduct the mixed-ownership reform, the subsidiaries of all levels affiliated to central enterprises shall generally follow the basic operating procedures, which involve carrying out the feasibility studies, preparing a plan for the mixed-ownership reform, going through the decision-making and approval processes, etc. in sequence. In addition, as for relevant steps for "capital mixing", the Guidelines clarify the key points of operations regarding asset audit and appraisal, mixed-ownership through the property right market or the stock market, etc., and make arrangements in particular for operations at the steps of "institutional reform" for enterprises of mixed-ownership, including the forms of corporate governance and management and control approaches, reform of three institutions, and the incentive and restraint mechanism.