China's central SOEs Urged to Enhance Internal Capital Control, Management

Workers carry out tasks relating to construction of a refinery project at a petrochemical industry base in Lianyungang, Jiangsu province. [Photo by Wang Jianmin/For China Daily]

China's top state-asset regulator has urged the country's centrally administrated state-owned enterprises to strengthen the internal control and management of capital in a bid to forestall the risk of major capital losses.

Central SOEs are required to improve systems and mechanisms regarding internal capital control and management, reinforce supervision over key links of internal capital control, and carry out risk control measures for overseas funds, read a circular released by the State-owned Assets Supervision and Administration Commission of the State Council.

The circular stressed the importance of clarifying the responsibilities and obligations of internal control departments as well as regulation work procedures to foster smooth operations among internal control, finance and auditing departments.

Efforts should also be made to incorporate internal control requirements into the entire processes of fund-related activities, enhance the oversight of large payments, and establish a sound internal control and supervision system for overseas funds, according to the circular.