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Shanghai launches pilot reforms to promote staff holding stakes in firms
June 16, 2017 / 2:15 AM / 6 months ago

Shanghai launches pilot reforms to promote staff holding stakes in firms

SHANGHAI, June 16 (Reuters) - Four companies owned by the Shanghai government will become the first to participate in a pilot ownership reform programme aimed at transferring stakes to staff members, the local government said.

China is embarking on a series of sweeping ownership and management reforms aimed at making its sclerotic and debt-ridden state sector more responsive to the market.

As part of the restructuring plans, the State-Owned Asset Supervision and Administration Commission (SASAC) said last year that staff in key positions, including managers and scientific researchers, would be granted stakes in government-run firms.

The Shanghai state asset regulator said on Thursday that it had chosen four units of local government-owned enterprises to begin the pilot programme, and urged them to draw up detailed plans, audits and risk assessments.

The firms include the Shanghai Electric Guoxuan New Energy Technology Co Ltd and the WeHotel Co Ltd. Also on the list is the Shanghai Jiushi Wisdom Sports Co Ltd, owned by the Shanghai Jiushi Group, a local public transportation operator, and the Shanghai New Jinqiao Environmental Protection Co Ltd.

According to guidelines published last year, individual staff members will be granted no more than 1 percent of shares, and the total amount of holdings granted to staff members must not exceed 30 percent of the company.

To avoid corruption risks, the guidelines ban senior government, company or Communist Party officials from participating in the share ownership scheme.

Reporting by David Stanway; Editing by Edwina Gibbs

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