call for SOEs to invest more in scitech

context: A new round of state-owned enterprise reform has been expected since a new ‘leading group’ to boost strategic emerging industries in central state-owned enterprises was announced on 27 May.

SASAC (State-owned Assets Supervision and Administration Commission) held a seminar on 25-26 July focused on enhancing SOEs (state-owned enterprises), reports Shanghai Securities News. The seminar gathered leaders from local SASACs to ensure the comprehensive execution of nationwide SOE reform, along with the mobilisation and deployment outlined in video conference calls for further action. 

During the meeting, a directive was issued, calling for

  • positioning scitech innovation as the core element within SOEs, thereby providing new competitive strengths
  • concentrating state-owned capital in forward-looking strategic emerging industries, with this capital infusion serving as 'long-term capital,' 'patient capital' and 'strategic capital'

Capital investment has an integral role in the growth of strategic emerging industries, stresses Li Jin 李锦 China Enterprise Research Institute chief researcher, noting this significance is pronounced during the fundamental stage of technology R&D which entails substantial capital outlays, extensive research timelines and gradual outcomes. A strategy involving long-term, patient, and strategic capital will serve as a crucial guide for advancing strategic emerging industries among SOEs, he argues.