State-owned Assets Supervision and Administration Commission of the State Council
| 国务院国有资产监督管理委员会 | |
 Logo of SASAC | |
.jpg?lang=en) Gate of SASAC | |
| Agency overview | |
|---|---|
| Formed | 10 March 2003 |
| Headquarters | Beijing |
| Agency executive | |
| Parent agency | State Council of the People's Republic of China |
| Website | www |
| State-owned Assets Supervision and Administration Commission of the State Council | |||||||
|---|---|---|---|---|---|---|---|
| Simplified Chinese | 国务院国有资产监督管理委员会 | ||||||
| Traditional Chinese | 國務院國有資產監督管理委員會 | ||||||
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| Abbreviation | |||||||
| Simplified Chinese | 国资委 | ||||||
| Traditional Chinese | 國資委 | ||||||
| Literal meaning | State Assets Commission | ||||||
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State representative
Executive organ Military organ
Supervisory organ |
 China portal |
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State-owned Assets Supervision and Administration Commission of the State Council (SASAC) is an institution directly under the State Council that acts as the state’s owner for centrally administered, non-financial state-owned enterprises (SOEs). It exercises shareholder functions on the State Council’s behalf, including senior appointments, performance evaluation, approval of major reorganisations and mergers, and rule-making on the management of state assets. Its mandate is grounded in State Council regulations issued in 2003 and in the 2008 law on state-owned assets in enterprises.[1][2][3]
SASAC’s remit covers central, non-financial SOE groups. Financial institutions are outside this scope. As of 2025 the commission’s English-language directory lists 96 central SOE groups, a figure that changes with mergers and restructurings.[4] Central SOEs are concentrated in backbone sectors such as energy, transport, telecommunications and construction, and operate across the domestic economy and international markets.[1]
Portfolio scale is large. In 2024 the total assets of central SOEs exceeded 90 trillion yuan (about US$12 trillion) and total profits were about 2.6 trillion yuan (about US$360 billion).[5][6]
Recent priorities emphasise value creation and capital-market discipline. In 2024 SASAC said market value management would be included in executive appraisals at listed SOEs, and it clarified that central SOEs are prohibited from establishing, acquiring or taking new stakes in financial institutions. The current chair is Zhang Yuzhuo.[7][8][9]
History
[edit]Origins and creation (2003)
[edit]SASAC was created in 2003 as part of a State Council restructuring that sought to clarify state ownership of major enterprises and separate government administration from enterprise management. The new body was placed directly under the State Council to exercise the state’s contributor and shareholder rights in centrally administered, non-financial state-owned enterprises.[10] Its mandate was framed the same year by the State Council’s Interim Regulations on the Supervision and Management of State-Owned Assets of Enterprises, which set out the goals of preserving and increasing state capital value and excluded financial institutions from the remit.[2] In early public briefings the first SASAC leadership described a toolkit that included executive appointments and evaluation, approval of major reorganisations, dispatch of supervisory boards to key firms, and drafting of rules on the management of state assets.[11]
Early oversight model (2003 to 2012)
[edit]In the years after its creation SASAC put in place executive performance contracts and an appraisal system for central SOE leaders. Provisional appraisal procedures were issued in late 2003 and by October 2004 the commission reported that most central SOEs had signed responsibility contracts setting financial and governance targets for annual and term evaluation.[12][13] Board reform followed. From 2004 SASAC piloted boards of directors and strengthened the role of outside directors to improve monitoring and decision-making at group level.[14][15] Supervisory boards dispatched on behalf of the State Council reviewed key enterprises and reported on performance and risk alongside SASAC’s appraisal work.[16] The legal base was consolidated with the 2008 law on state-owned assets in enterprises, which codified the state owner system and the division of central and local contributor functions.[3] During this period fiscal arrangements for state-capital income were clarified. The state capital operating budget was administered through the Ministry of Finance, while SASAC continued to develop owner-oversight tools around appointments, boards and performance contracts.[17]
Reform acceleration (2013 to 2016)
[edit]The Party’s Third Plenum in 2013 set out plans to develop mixed ownership and to shift from managing enterprises toward managing state capital.[18] In 2015 the Guiding Opinions on Deepening State-owned Enterprise Reform provided the main blueprint and a “1+N” package of supporting documents. Policies classified SOEs into commercial and public-welfare categories with differentiated appraisal, and affirmed Party leadership inside corporate governance.[19][20][21] SASAC and the State Council also launched pilots for state-capital investment and state-capital operation companies that would manage portfolios of state equity at arm’s length from operating firms. In early 2016 China Chengtong and China Reform Holdings were named as the first central state-capital operation platforms.[22] Restructuring accelerated. Notable mergers included CSR and CNR to form CRRC in 2015, COSCO Shipping in 2016, and the creation of China Baowu through the combination of Baosteel and Wuhan Iron & Steel in 2016.[23][24][25]
State-capital management shift (2017 to 2020)
[edit]From 2017 policy moved further toward managing capital. SASAC updated supervision rules for investment by central enterprises and issued dedicated measures for overseas investment that introduced a negative list, main-business requirements and whole-life-cycle oversight. The National Development and Reform Commission revised outbound investment procedures for all firms the same year.[26][27][28] Portfolio consolidation continued with the 2017 merger of Shenhua Group and Guodian Group to form China Energy Investment and the 2019 expansion of Baowu through a controlling stake in Magang Group.[29][30] Governance pilots also widened. The Double Hundred Action selected central and local SOE subsidiaries to trial market-oriented incentives, board practices and mixed-ownership mechanisms.[31] Balance-sheet discipline became a priority. SASAC set multi-year targets to lower the average asset-liability ratio of central SOEs and reported that goals for the 2018 to 2020 period had been met by the end of 2020.[32] In parallel the State Council launched transfers of 10% of state equity in qualified SOEs to the National Social Security Fund to support pensions and diversify state shareholding.[33][34]
Recent developments (2021 to present)
[edit]SASAC reported completion of the 2020 to 2022 SOE reform action plan and moved to a new phase that emphasises “value creation”, capital-market discipline and comprehensive compliance systems.[35][7] In 2024 the commission said market value management would be included in executive appraisals at listed SOEs, and clarified that central SOEs are prohibited from establishing, acquiring or taking new stakes in financial institutions.[7][8] Aggregate results published by SASAC show that in 2024 central SOEs had total assets above 90 trillion yuan and total profits of about 2.6 trillion yuan.[5]
Mandate and legal status
[edit]SASAC is an institution directly under the State Council that represents the state as investor in centrally administered, non-financial state-owned enterprises. It exercises the contributor’s rights on the State Council’s behalf, including setting performance targets, evaluating results, proposing or appointing senior executives, approving major reorganizations and drafting rules on the management of state assets. The legal foundation is the State Council’s 2003 interim regulations on supervision of enterprise state assets and the 2008 national law on state-owned assets in enterprises.[1][2][3]
SASAC’s tools are shareholder-style rather than industry licensing. The commission operates an executive appraisal system based on written responsibility contracts and board governance norms, including the use of outside directors at central SOE groups.[12] It also issues and enforces rules for investment and asset management, including measures that supervise domestic investment and overseas investment by central enterprises, and it reviews major transactions and restructurings for alignment with state-capital objectives.[26][27][2]
The commission’s remit is limited to central, non-financial SOEs. Financial institutions sit outside SASAC’s scope under the 2003 regulations. In 2024 SASAC clarified that central SOEs are prohibited from establishing, acquiring or taking new stakes in financial institutions, and encouraged divestment of non-core financial holdings.[2][8]
Significance
[edit]SASAC oversees China's SOEs in nonfinancial industries deemed strategically important by the State Council, including national champions in areas like energy, infrastructure, strategic minerals, and civil aviation.[36]: 79
The state-owned investment companies of SASAC serve as a mechanism through which the Chinese government can influence the market through the use of capital rather than government directive.[36]: 16
Central SOEs
[edit]As of 2023[update], SASAC currently oversees 97 centrally owned companies.[37][38] These central SOEs (yangqi) are SOEs that cover industries deemed most vital to the national economy.[39]: 6 Companies directly supervised by SASAC are continuously reduced through mergers according to the state-owned enterprise restructuring plan with the number of SASAC companies down from over 150 in 2008.[40]
Central SOEs are further categorized based on their size and strategic importance.[41]: 10 "Core" enterprises described as "important backbone SOEs" include enterprises such as China Mobile, State Grid, and Sinopec.[41]: 10
Institutions affiliated to SASAC
[edit]- Information Center
- Technological Research Center for Supervisory Panels Work
- Training Center
- Economic Research Center
- China Economics Publishing House
- China Business Executives Academy, Dalian
Industrial associations
[edit]Affiliated industrial associations include:
- China Federation of Industrial Economics
- China Enterprise Confederation
- China Association for Quality
- China Packaging Technology Association
- China International Cooperation Association for SMEs
- China General Chamber of Commerce
- China Federation of Logistics and Purchasing
- China Coal Industry Association
- China Machinery Industry Federation
- China Iron and Steel Association
- China Petroleum and Chemical Industry Association
- China National Light Industry Associations
- China National Textile Industry Council
- China Building Materials Industry Association
- China Nonferrous Metals Industry Association
Leadership
[edit]Directors
[edit]| Name | Chinese name | Took office | Left office |
|---|---|---|---|
| Li Rongrong | 李荣融 | April 2003 | August 2010 |
| Wang Yong | 王勇 | August 2010 | March 2013 |
| Jiang Jiemin | 蒋洁敏 | March 2013 | September 2013 |
| Zhang Yi | 张毅 | December 2013 | February 2016 |
| Xiao Yaqing | 肖亚庆 | February 2016 | May 2019 |
| Hao Peng | 郝鹏 | 17 May 2019 | 3 February 2023 |
| Zhang Yuzhuo | 张玉卓 | February 2016 | Incumbent |
See also
[edit]- China Beijing Equity Exchange
- List of government-owned companies of China
- Rostec
- State-owned Enterprises Commission, the equivalent in Taiwan (ROC)
- Federal Agency for State Property Management
References
[edit]- ^ a b c "About us". State-owned Assets Supervision and Administration Commission of the State Council (SASAC). Retrieved 18 October 2025.
- ^ a b c d e "Interim Regulations on the Supervision and Management of State-Owned Assets of Enterprises". State Council English. 24 November 2003. Retrieved 18 October 2025.
These Regulations are applicable to state-owned assets of enterprises. These Regulations are not applicable to the supervision and management of state-owned assets of financial institutions.
- ^ a b c "Law of the People's Republic of China on State-Owned Assets in Enterprises". National People’s Congress. 1 January 2008. Retrieved 18 October 2025.
- ^ "Directory of central SOEs". State-owned Assets Supervision and Administration Commission of the State Council (SASAC). Retrieved 18 October 2025.
- ^ a b "Profits of China's central SOEs reach 2.6 trillion yuan in 2024". State-owned Assets Supervision and Administration Commission of the State Council (SASAC). 20 January 2025. Retrieved 18 October 2025.
In 2024, the total assets of central SOEs exceeded 90 trillion yuan.
- ^ "H.10 Foreign Exchange Rates". Board of Governors of the Federal Reserve System. Retrieved 18 October 2025.
USD conversions in this article use an illustrative rate of about CN¥7.2 per US$1 as of late 2024 for readability. Figures are rounded to high-level amounts.
- ^ a b c "SOE profits, share value prioritized". State-owned Assets Supervision and Administration Commission of the State Council (SASAC). 31 January 2024. Retrieved 18 October 2025.
Inclusion of market value management in the performance appraisal system for executives at listed SOEs.
- ^ a b c "SOEs told to limit involvement in financial institutions". State-owned Assets Supervision and Administration Commission of the State Council (SASAC). 5 June 2024. Retrieved 18 October 2025.
- ^ "Zhang Yuzhuo — Party Secretary and Chairman". State-owned Assets Supervision and Administration Commission of the State Council (SASAC). 29 December 2022. Retrieved 18 October 2025.
- ^ "Plan for Restructuring the State Council (2003) — establishment of SASAC". State Council Gazette (Chinese). March 2003. Retrieved 18 October 2025.
- ^ "Speech by Li Rongrong on the establishment and functions of SASAC". State Council (Chinese). May 2003. Retrieved 18 October 2025.
- ^ a b Corporate Governance of State-Owned Enterprises in China (Report). OECD. 2004. Retrieved 18 October 2025.
Describes SASAC's November 2003 provisional appraisal procedures and early implementation.
- ^ "Most central SOEs sign performance responsibility contracts". Gov.cn (English). 26 October 2004. Retrieved 18 October 2025.
- ^ "Notice on pilot work establishing boards of directors in central enterprises". SASAC (Chinese). 2004. Retrieved 18 October 2025.
- ^ "SASAC expands the outside director system in central SOEs". SASAC (Chinese). 2009. Retrieved 18 October 2025.
- ^ "Provisions on supervisory boards dispatched by the State Council to key state-owned enterprises". State Council (Chinese). 2003. Retrieved 18 October 2025.
- ^ Naughton, Barry (2005). "SASAC and the ownership reform of China's state sector". China Leadership Monitor. Retrieved 18 October 2025.
- ^ "Decision on Major Issues Concerning Comprehensively Deepening Reforms". Xinhua. 15 November 2013. Retrieved 18 October 2025.
- ^ "CPC Central Committee and State Council issue Guiding Opinions on Deepening SOE Reform". Gov.cn (English). 13 September 2015. Retrieved 18 October 2025.
- ^ "Opinions on classifying state-owned enterprises to push forward reform". Gov.cn (English). 29 December 2015. Retrieved 18 October 2025.
- ^ "Opinions on upholding Party leadership and strengthening Party building in deepening SOE reform". Gov.cn (English). 2015. Retrieved 18 October 2025.
- ^ "China names first two state capital operation companies". Xinhua. 23 February 2016. Retrieved 18 October 2025.
- ^ "Merger of CSR and CNR approved to form CRRC". CRRC. 2015. Retrieved 18 October 2025.
- ^ "China COSCO Shipping Corporation Limited established". COSCO Shipping. 2016. Retrieved 18 October 2025.
- ^ "Baosteel and Wuhan Iron & Steel restructure to form China Baowu". China Baowu. 2016. Retrieved 18 October 2025.
- ^ a b "Measures for the Supervision and Administration of Investment of Central Enterprises (Order No. 34)". SASAC (Chinese). 2017. Retrieved 18 October 2025.
- ^ a b "Measures for the Supervision and Administration of Overseas Investment of Central Enterprises (Order No. 35)". SASAC (Chinese). 2017. Retrieved 18 October 2025.
- ^ "Administrative Measures for Overseas Investment (Order No. 11)". National Development and Reform Commission. 2017. Retrieved 18 October 2025.
- ^ "China Energy Investment Corporation established after Shenhua–Guodian merger". China Energy Investment. 2017. Retrieved 18 October 2025.
- ^ "China Baowu becomes controlling shareholder of Magang Group". China Baowu. 2019. Retrieved 18 October 2025.
- ^ "Double Hundred Action launches to deepen mixed-ownership and governance pilots". SASAC. 2018. Retrieved 18 October 2025.
- ^ "Central SOEs meet asset-liability ratio target for 2018 to 2020". SASAC. 2020. Retrieved 18 October 2025.
- ^ "State Council announces transfer of 10% of state-owned equity to NSSF". Gov.cn (English). 18 November 2017. Retrieved 18 October 2025.
- ^ "Implementation of state equity transfers to NSSF advances". Xinhua. 22 November 2019. Retrieved 18 October 2025.
- ^ "Three-Year Action Plan for SOE Reform completed". SASAC. 2022. Retrieved 18 October 2025.
- ^ a b Liu, Zongyuan Zoe (2023). Sovereign Funds: How the Communist Party of China Finances its Global Ambitions. The Belknap Press of Harvard University Press. doi:10.2307/jj.2915805. ISBN 9780674271913. JSTOR jj.2915805.
- ^ Davis, Stuart (2023). Sanctions as War: Anti-Imperialist Perspectives on American Geo-Economic Strategy. Haymarket Books. p. 112. ISBN 978-1-64259-812-4. OCLC 1345216431.
- ^ "央企名录" [List of Central SOEs]. Official website of SASAC (in Chinese). 20 December 2016. Archived from the original on 24 October 2016. Retrieved 10 February 2017.
- ^ Chen, Muyang (2024). The Latecomer's Rise: Policy Banks and the Globalization of China's Development Finance. Ithaca and London: Cornell University Press. ISBN 9781501775857.
- ^ "China gives state firms $8 bln to combat slowdown". Reuters. November 28, 2008. Archived from the original on October 15, 2020. Retrieved July 2, 2017.
- ^ a b Leutert, Wendy (2024). China's State-Owned Enterprises: Leadership, Reform, and Internationalization. Business and Public Policy Series. Cambridge: Cambridge University Press. ISBN 978-1-009-48654-5.
- ^ a b Massot, Pascale (2024). China's Vulnerability Paradox: How the World's Largest Consumer Transformed Global Commodity Markets. New York, NY, United States of America: Oxford University Press. p. 202. ISBN 978-0-19-777140-2.
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