The &Nbsp Regulation On Foreign Capital Supervision In Central Enterprises Is Strengthened.

After years of deliberation, the SASAC yesterday formally promulgated the Interim Measures for the supervision and administration of overseas state-owned assets of the central enterprises (hereinafter referred to as the "overseas assets supervision and regulation") and the Interim Measures for the administration of state-owned property rights of the central enterprises (hereinafter referred to as the "Regulations on the management of overseas property rights").

This marks the regulatory authorities began to regulate the supervision of 4 trillion large central enterprises overseas assets.

Regular spot checks of overseas enterprises

The two method will be formally implemented in July 1st.

The regulation of overseas assets supervision is clear: the SASAC shall organize and carry out basic management work such as property registration, assets statistics, capital verification, asset appraisal and performance evaluation of the state-owned assets of the central enterprises, and explicitly incorporate the overseas enterprises into the performance appraisal and performance evaluation scope of the central enterprises for the first time, and organize the spot check and audit of overseas enterprises regularly.

The central enterprises should make clear the expatriates.

It is understood that in the early days of reform and opening up, some state-owned enterprises took the form of private investment in the form of private investment, which was often a channel for the loss of state assets.

The regulations governing the management of overseas property rights are clear: "the relevant legal provisions of the registration place of overseas enterprises must be held in the name of individuals, and shall be decided or approved by the central enterprises in accordance with the relevant provisions, and the entrusted assets shall be handled in accordance with the law in order to protect the property rights of the whole country.

7 overseas crimes will be held accountable

Yesterday, the SASAC announced that 7 major cases of overseas enterprises will be held accountable by the responsible person.

If there is a violation of the lending account of a bank, the investment, dispatch and use of funds and disposal of assets are excessive or irregularities; there are serious defects in the internal control precautions; there are non account pactions and extra capital assets; pfer profits through improper pactions; misappropriation or interception of the proceeds payable; and failure to report major matters in time.

It is worth noting that these two measures did not specify what specific penalties should be made after the loss of assets in foreign countries. The SASAC said that the loss of overseas assets of central enterprises will also be dealt with in accordance with the Interim Measures for the responsibility of assets loss of central enterprises.

background

Central enterprises frequent overseas losses

According to the SASAC statistics, as of the end of 2009, there were 108 central enterprises investing in 5901 overseas units, and the overseas assets of the central enterprises exceeded 4 trillion yuan. The profits accounted for 37.7% of the total profits of the central enterprises.

But in recent years, central enterprises overseas losses have been frequent. For example, China aviation oil has lost 550 million US dollars in fuel hedging. Last year, China Railway set up a loss of 4 billion 100 million yuan in Saudi Arabia.

In 2010, the SASAC issued the notice on the central enterprises' clearance and regulation of individual property rights in overseas investment.

SASAC deputy director Shao Ning has said that the SASAC looks at overseas losses and domestic losses.

From the institutional point of view, we must find out the reasons, clarify and accountability.