China's state oil giant to complete ownership reforms by Nov
SHANGHAI (Reuters) — State-owned refiner China National Petroleum Corp (CNPC) said it will complete mandatory mixed-ownership reforms before the end of November, as part of government efforts to make state firms more efficient and market-oriented.
CNPC, the state-owned parent of PetroChina, said on Monday it has established a special working group to complete the reform process, which aims to restructure firms into limited liability corporations and cut direct government interference in their business operations.
China has ordered all state-run enterprises to modernize their ownership structures and introduce private capital as part of a reform program for its debt-ravaged state sector.
The total liabilities of state firms reached $14.11 T by the end of June, up 11.4% from a year ago, according to the most recent data.
The government promised at the end of last year that it would make substantial progress in bringing mixed ownership reforms to the electricity, oil, natural gas, railway, civil aviation, telecommunications and military industries in 2017.
By the middle of June, it had already completed 48 deals allowing private capital to invest in government-run firms, state media said.
While China is keen to make its lumbering state sector more responsive to the market, senior leaders have urged firms to avoid "erroneous" notions like privatization and to reinforce the role of the Communist Party.
Reporting by David Stanway; Editing by Richard Pullin
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