State-owned assets 'need to be further capitalized'

More funds should be put into social security system, says CSRC chief

China's State-owned assets need to be further capitalized to promote economic reform and their liquidity in the capital markets should be strengthened, Guo Shuqing, a leading candidate for central bank governor, said on Wednesday.

Guo, who is the chairman of the China Securities Regulatory Commission, made the remarks while attending a forum held by Caijing magazine in Beijing.

The economic overhaul should focus on the development of both State-owned and private companies, Guo said.

He suggested putting more State-owned assets - including those from State-owned banks and insurance companies - into the social security system to serve that purpose.

"They can shift 30 percent of their assets, instead of the current 10 percent, to the social security fund for preserving and increasing the value," Guo said.

"And the wage system of SOEs should also be improved to add to their vitality," he added.

Now it's the time to achieve a breakthrough in terms of the State-owned enterprises' reform, by capitalizing State-owned assets and letting the private sector and the public hold shares, said Chen Qingtai, former deputy director of the Development Research Center of the State Council.

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