China mulls red lines to protect state assets against SOE graft  

(ECNS) --In efforts to boost reform among state-owned enterprises (SOEs), China is mulling a set of red lines to protect its assets against official corruption, Information Daily said, citing an expert.

Li Jin, Vice Director of China Enterprise Reform and Development Society, said reforms are aimed to improve supervision as well as curb potential loss of state assets and further corruption.

A portion of people have shown a tendency to privately profit from mixed-ownership reforms, as these involve asset restructuring and spinoffs, he said, adding that "grey areas" have emerged due to un-robust regulations and un-transparent supervision.

Society vice director Zhou Fangsheng said in an interview with Xinhua that as much as 100-million-yuan ($16.3 million) in illegal deals involving state assets are made possible when a SOE official takes a bribe of one million yuna ($163,201) on average.

Many experts agree that preventing the loss of state assets via proper supervision is vital for successful reform.

To date, about 20 provincial and municipal governments, including those in Shanghai and South China's Guangdong Province, have worked out road maps for local mixed-ownership SOE reforms, according to media reports.