State-owned Assets Supervision and Administration Commission of the State Council

 

State-owned Assets Supervision and Administration Commission of the State Council (SASAC) is a special entity under the supervision of the State Council of the People's Republic of China (PRC), and is authorized to represent PRC to perform investor's responsibilities to supervise the preservation and appreciation the value of state-owned assets.

SASAC is responsible for supervising and administering the state-owned assets of the enterprises under the supervision of the Central Government (excluding financial institutions). The main responsibilities of SASAC are: authorized by the State Council, in accordance with the Company Law of the People's Republic of China and other administrative regulations, SASAC performs investor's responsibilities to guide and push forward the reform and restructuring of state-owned enterprises, supervises the preservation and appreciation of the value of the state-owned assets of the supervised enterprises, enhances the management of the state-owned assets, advances the establishment of modern enterprise system of the state-owned enterprises, improves corporate governance, and propels the strategic adjustment of the structure and layout of the state-owned economy. SASAC dispatches the Supervisory Board to some large-scale enterprises on behalf of PRC and takes charge of daily management of the Supervisory Board. SASAC appoints, removes and checks the top executives of the supervised enterprises through legal procedures, grants rewards or takes disciplinary punishments in accordance with their business performance, establishes the executive selection system in accordance with the requirements of the socialist market economy system and modern enterprise system, and improves the incentive and check-and-balance system for corporate management. SASAC supervises and administers the preservation and appreciation of the value of the state-owned assets of the supervised enterprises through statistics and auditing, establishes and improves the index system of the preservation and appreciation of the value of the state-owned assets, works out assessment criteria, and maintains the rights of the investors for the state-owned assets. SASAC is also responsible for drafting laws and administrative rules, drawing up relevant regulations on the management of the state-owned assets, directing and supervising the management work of local state-owned assets according to laws, and undertaking other tasks assigned by the State Council.