| China: Integrity Scorecard Report > Sub-Category: State-Owned Enterprises | ||
| Indicators | Score | |
| 67 | In law, is there an agency, series of agencies, or equivalent mechanism overseeing state-owned companies? | 100 |
| 68 | Is the agency, series of agencies, or equivalent mechanism overseeing state-owned companies effective? | 60 |
| 69 | Can citizens access the financial records of state-owned companies? | 25 |
Indicator and sub-Indicator Details
| 67 | In law, is there an agency, series of agencies, or equivalent mechanism overseeing state-owned companies? | |||||||
| 67: In law, is there an agency, series of agencies, or equivalent mechanism overseeing state-owned companies? | ||||||||
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Comments: References: State-Owned Assets Supervision and Administration Commission, established by the State Council
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| 68 | Is the agency, series of agencies, or equivalent mechanism overseeing state-owned companies effective? | |||||||
| 68a: In law, the agency, series of agencies, or equivalent mechanism overseeing state-owned companies is protected from political interference. | ||||||||
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Comments: It's not dependent. References: None cited.
Peer Review Comments: Just like other government agencies, the agency overseeing state-owned companies is under the leadership of the Communist Party of China (CPC).
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| 68b: In practice, the agency, series of agencies, or equivalent mechanism overseeing state-owned companies has a professional, full-time staff. | ||||||||
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Comments: Overstaffing is common in China's government agencies. References: 1. "State ownedasset supervision and the administration's admission rate is 0.5 percent," website of SASAA. [ LINK ] 2. State-owned Assets Supervision and Administration Information Center, "Proceedings of communications with new officials," June 11, 2008. [ LINK ]
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| 68c: In practice, the agency, series of agencies, or equivalent mechanism overseeing state-owned companies receives regular funding. | ||||||||
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Comments: References: 1. "A review of the operation of SASAC's work in past 5 years," June 6, 2008. [ LINK ] 2, "The speech of Li Shousheng on handling extra budget issues," May 26, 2009. [ LINK ]
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| 68d: In practice, when necessary, the agency, series of agencies, or equivalent mechanism overseeing state-owned companies independently initiates investigations. | ||||||||
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Comments: References: 1. "The effectiveness of SASAC's investigation of business corruption is questioned," Jing Ji Can Kao Bao, Aug. 25, 2009. [ LINK ] 2. "SASAC investigates cases where foriegn companies bribed Chinese state-owned enterprises," Cai Jing, Aug. 22, 2009. [ LINK ]
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| 68e: In practice, when necessary, the agency, series of agencies, or equivalent mechanism overseeing state-owned companies imposes penalties on offenders. | ||||||||
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Comments: References: 1. "Three measures on state ownedassets regulation," Jin Yang Wang, Sept. 11, 2008. [ LINK ] 2. Interim Measures for the Liabilities of Central Enterprises for Asset Losses, effective since Oct.1, 2008, by order of the Stated-owned Assets Supervision and Administration Commission of the State Council
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| 69 | Can citizens access the financial records of state-owned companies? | |||||||
| 69a: In law, citizens can access the financial records of state-owned companies. | ||||||||
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Comments: Only publicly listed state-owned firms should disclose their financial record publicly. References: None cited
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| 69b: In practice, the financial records of state-owned companies are regularly updated. | ||||||||
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Comments: The financial records of state-owned companies are generally flawed and incomplete, even for publicly listed firms. References: 1. Wang Yong, "The distribution of state ownedassets' profits and the establishment of social security system," Baidu Finance, Feb. 26, 2008
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| 69c: In practice, the financial records of state-owned companies are audited according to international accounting standards. | ||||||||
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Comments: Since 2008, SASAC, as the regulator, started requiring all state-owned enterprises to adopt new accounting standards, which are accepted internationally. However, since this is the first year of using the new accounting standards, their implementation will be an open question until the end of this fiscal year, when all firms are required to write their financial reports. There may be further upward revision in the future, but a 50 is suitable for this year's situation. References: 1. Kai Li, 2009, "An analysis of new accounting standards on state-owned enterprises," Xian Dai Shangye, Issue 3. [ LINK ] 2. "SASAC urges state-owned enterprises to use new accounting standards," Zheng Quan Shibao, June 6, 2008
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| 69d: In practice, citizens can access the financial records of state-owned companies within a reasonable time period. | ||||||||
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Comments: References: 1. Cheng Meiying, 2009, "Some thoughts about state-owned enterprises' financial records management," Studa.net, April. 6, 2009. [ LINK ] 2. Zhang Tong, 2008, "On guaranteeing the accuracy of financial information of state-owned enterprises," Shangye Xiandaihua, Issue 10. [ LINK ]
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| 69e: In practice, citizens can access the financial records of state-owned companies at a reasonable cost. | ||||||||
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Comments: References: 1. Cheng Meiying, 2009, "Some thoughts about state-owned enterprises' financial records management," Studa.net, April. 6, 2009. [ LINK ] 2. Zhang Tong, 2008, "On guaranteeing the accuracy of financial information of state-owned enterprises," Shangye Xiandaihua, Issue 10. [ LINK ]
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