CHINA will punish managers of State-owned enterprises (SOE) if they are found responsible for losing State assets or selling stakes on the cheap, under new rules released by the Cabinet Tuesday.

    According to a notice published on the government’s official website (http://www.gov.cn), managers at State-owned firms will be held to strict account if they break rules or fail to do their duty in ways that cause the loss of State assets or “other severely adverse consequences.”

    The government will aim to have a new system in place by the end of 2017 that will clarify the roles and responsibilities of SOE managers, the document showed.

    China is embarking on a revamp of its massive but debt-ridden State sector, which has struggled under a system that requires them to maximize economic gains while fulfilling government policy objectives.

    While senior officials have promised that the market will be allowed to play a greater role in decision making, the government is still anxious that SOEs maintain their “strategic” role in economy and society.

    Last month, the State Council urged all SOEs to be more rational and efficient in their use of resources in order to fulfill their “functional use” in sectors such as national defense, food, energy and transportation.

    The government has vowed to create innovative and globally competitive enterprises through mergers, asset swaps and management reforms. President Xi Jinping has also called for the role of the Communist Party to be strengthened.(SD-Agencies)