Our review draft defines SASAC as an investor, which is an important step forward. But I still think the review draft still has three shortcomings.

First, it is not enough for the reviewed draft to only define the investors. The investor, trustees, managers, and supervisor should interact and cooperate with each other.

Second, the law is inappropriately ahead of certain other reforms, and makes clarifications that are predicated on other reforms that have yet to be solidified.

The draft notes that besides SASAC, other government organs can serve as investors, like for example the railway department. The railway department exists between several roles, working both towards the public interest and as a business. For the law to be unclear here, and to place all of these kinds of government organs into one boat, is a step backwards.

Third, the draft should define clearly investors' roles. I think the SASAC should purely serve as an investor, and have its regulatory, administrative, and legislative functions  stripped. The SASAC should only act towards maintaining and increasing the state-owned asset and maximizing shareholders’ interests.

In the current draft, the biggest progress is that the regulatory function of the SASAC is deprived. All members have reached a consensus on this point. But the draft doesn’t make clear what body will serve as a supervisor.

Next, we will work to make clear investor’s rights, duties and its responsibility. Innovations is still needed in drawing up reform of the state-owned asset management system. Beyond this, the draft should clarify what the investor, trustor, supervisor, manager, and judicial roles are.

The NPC and people’s congress at all levels should serves as trustors; SASAC in different areas should serve as the investor; the state-owned enterprises as the manager; independent governmental organs as supervisors; and the judiciary serving as legal functions.

Finding a balance between these five organs can effectively avoid the loss of state-owned assets and maximize their shareholders’ interests.