THE government will punish officials at State-owned enterprises (SOEs) held responsible for the loss of State assets, the country’s asset regulator said late Monday.

The State Council said in 2016 that it would take action against managers accused of selling stakes on the cheap or investing in overpriced overseas projects.

The move was expected to put giant government enterprises under more pressure to comply with State guidelines, especially overseas.

In detailed “implementation measures” published Monday, the State-owned Asset Supervision and Administration Commission (SASAC) said it would take action against officials who fail to perform their duties and whose actions result in asset losses or “other serious adverse consequences.”

China began a new round of reforms in 2016 aimed at streamlining its SOEs by introducing private capital, curbing overcapacity, shutting down “zombie” subsidiaries and restructuring assets.

SASAC chairman Xiao Yaqing told a meeting of executives last month that SOEs needed to adjust investment structures, slash excess capacity and improve cash flow management.

Debt to asset ratios among government enterprises stood at an average of 66 percent by the end of June, down 0.3 percentage points since the beginning of the year, the SASAC said.

(SD-Agencies)