Notice of the Central Committee of the Communist Party of China and The State Council on the Guiding Opinions on Improving the Management of State-owned Financial Capital

Announcement of the CPC Central Committee and The State Council

State-owned financial capital is an important guarantee for promoting national modernization and safeguarding national financial security, and an important material and political foundation for the development of the cause of our Party and country. State-owned financial institutions are an important pillar for serving the real economy, preventing and controlling financial risks, deepening financial reform, and an important force for promoting a virtuous cycle of healthy economic and financial development. In recent years, the scale of China's state-owned financial capital has grown steadily, its strength is growing day by day, the management system and mechanism have been continuously improved, the reform of state-owned financial institutions has been continuously promoted, and the operating efficiency has been significantly improved, which has made important contributions to promoting the steady and healthy development of the socialist market economy. However, it should also be noted that there are still contradictions and problems in the management of state-owned financial capital, such as scattered responsibilities, unclear powers and responsibilities, unclear authorization, poor layout, and the allocation efficiency needs to be improved, and the rule of law is not in place. It is necessary to further improve the state-owned financial capital system and mechanism and optimize the management system. Going forward, in the process of decisively completing the building of a moderately prosperous society in all respects, realizing socialist modernization and the great rejuvenation of the Chinese nation, we will earnestly implement the decisions and plans of the CPC Central Committee and The State Council, continue to give full play to the important role of state-owned financial capital, exercise proper control and use of state-owned financial capital in accordance with the law and regulations, and unswervingly strengthen, improve and expand state-owned financial capital. We will continue to enhance the vitality, control, influence and resilience of the state-owned economy. The following opinions are put forward to improve the management of state-owned financial capital.

I. General requirements

(1) Guiding ideology.  Focusing on improving the efficiency of state-owned financial capital and the vitality, competitiveness and sustainable development capacity of state-owned financial institutions, respecting the laws of market economy and enterprise development, and serving the real economy, preventing and controlling financial risks, and deepening financial reform, we will coordinate the strategic layout of state-owned financial capital, improve the management system for state-owned financial capital, and optimize the management system for state-owned financial capital. Promoting the sustained and healthy operation of state-owned financial institutions will provide strong support for promoting the modernization of the financial governance system and governance capacity, ensuring national financial security, and promoting sustained and healthy economic and social development.

(2) Basic principles

-- Serving the overall situation. We will unwaveringly consolidate and develop the public sector of the economy, maintain the dominant position of state-owned financial capital in the financial sector, and maintain the state's control over key financial institutions to better serve the development of our socialist market economy.

-- Adhering to unified management. Promote the innovation of state-owned financial capital management system through legal thinking and legal methods. Strengthen the unified management, penetration management and statistical monitoring of state-owned financial capital, strengthen the whole-process supervision of state-owned property rights, and implement the full-caliber reporting system.

-- Ensuring clarity of powers and responsibilities. Clarify the powers and responsibilities of financial regulatory departments, institutions that perform the duties of state-owned financial capital donors and state-owned financial institutions, improve the authorized operation system, and clarify the principal-agent relationship. We will improve incentive and restraint mechanisms and strictly prevent the loss of state-owned financial capital.

-- Be problem-oriented. Focus on the problems and obstacles restricting the management of state-owned financial capital, strengthen coordination, coordinate policies, straighten out the management system and mechanism, improve the basic management system, promote the optimization of the distribution of state-owned financial capital, standardized operation, preservation and increase of value, and effectively safeguard capital security.

-- Upholding the leadership of the Party. We will implement the requirements for comprehensively and strictly governing the Party, strengthen Party leadership and Party building in state-owned financial institutions, promote the integration of capital management and party building management, and ensure that the Party's line, principles, policies, and major decisions and arrangements are fully implemented.

(3) Main objectives

We will establish and improve the "four beams and eight pillars" of state-owned financial capital management, optimize the strategic layout of state-owned financial capital, straighten out the management system of state-owned financial capital, enhance the vitality and control of state-owned financial institutions, promote the preservation and appreciation of state-owned financial capital, and better fulfill the three basic tasks of serving the real economy, preventing and controlling financial risks, and deepening financial reform.

-- Laws and regulations will be improved. We will enact laws and regulations on the management of state-owned financial capital, clarify the legal status of investors, and realize that the power is authorized by law and the power and responsibility are statutory. Institutions that perform the duties of contributors of state-owned financial capital exercise relevant rights according to law, and assume management responsibilities in accordance with the principle of matching power and responsibility and equality of power and responsibility.

-- Capital distribution is more rational. We will further improve the efficiency of state-owned financial capital allocation, give full play to the leading role of state-owned financial capital in the financial sector, continue to maintain the state's control over key state-owned financial institutions, and significantly enhance the ability of financial services to serve the real economy.

-- Improved capital management. With capital as the link and property rights as the basis, we will standardize the principal-agent relationship, improve the management methods of state-owned financial capital, innovate the capital management mechanism, strengthen the means of capital management, give play to the role of incentives and constraints, strengthen infrastructure construction, and further improve the scientific and effective management.

-- Party building has been strengthened. Strengthen the Party's leadership over state-owned financial institutions, strengthen party building in state-owned financial institutions, consolidate the legal status of party committees (party groups) in corporate governance, give play to the leading role of party committees (party groups), and provide strong political guarantees, organizational guarantees and talent support for state-owned financial capital management.

Second, improve the state-owned financial capital management system

State-owned financial capital refers to the capital and rights and interests formed by the state and its authorized investment entities directly or indirectly in financial institutions. The capital formed and the rights and interests to be enjoyed by financial institutions supported by state power and credit shall be included in the management of state-owned financial capital, except as otherwise provided by law.

4. Improving the allocation of state-owned financial capital. We will make overall plans for the strategic layout of state-owned financial capital to meet the needs of economic development, and make appropriate adjustments to the proportion of state-owned financial capital in banking, insurance, securities and other industries, improve the efficiency of capital allocation, and realize the unity of strategic, security, and efficiency objectives. It is necessary not only to reduce the excessive occupation of state-owned financial capital, but also to ensure that state-owned financial capital maintains the necessary control in the financial field. For development and policy-oriented financial institutions, maintain the nature of wholly state-owned or wholly owned. For financial infrastructure institutions involving national financial security and strong spillover, the state shall maintain absolute control. For state-owned financial institutions with important influence in the industry, maintain the control and leading role of state-owned financial capital. For other state-owned financial institutions in the field of competition, actively introduce all kinds of capital, state-owned financial capital can be absolute holding, relative holding, or participation. We will continue to prudently carry out the reform of mixed ownership of state-owned financial institutions in accordance with market-based principles.

(5) Clarify the responsibilities of state-owned financial capital contributors. State-owned financial capital belongs to the state, that is, to the whole people. The State Council exercises ownership of state-owned financial capital on behalf of the State. The State Council and local governments shall, in accordance with laws and regulations, perform the duties of investors on behalf of the State respectively. In accordance with the principles of matching power and responsibility, equal power and responsibility, and unity of power and responsibility, financial departments at all levels centrally and uniformly perform the duties of contributors of state-owned financial capital in accordance with the authorization of the governments at the same level. The State Council authorizes the Ministry of Finance to perform the duties of the investor of state-owned financial capital. Local governments authorize local financial departments to perform their duties as contributors of local state-owned financial capital. Financial departments at all levels that perform the functions of investors shall enjoy the rights of investors such as participation in major decisions, selection of managers, and enjoyment of profits to relevant financial institutions according to law and regulations, and shall perform their duties and ensure the rights and interests of investors in accordance with laws and regulations and the articles of association of enterprises.

6. Strengthen unified management of state-owned financial capital. Improve the state-owned financial capital management system, in accordance with the principle of unified regulation and hierarchical management, the Ministry of Finance is responsible for the formulation of national unified state-owned financial capital management rules and regulations. Financial departments at all levels perform the duties of state-owned financial capital management in accordance with laws and regulations, and are responsible for organizing the implementation of basic management, operating budgets, performance assessment, and management of responsible persons' compensation. We should strictly regulate comprehensive financial operations and the integration of industry and finance, separate state-owned financial capital management from industrial capital management, and establish a risk firewall to avoid risk transmission. Financial departments at all levels may, according to needs, entrust other departments and institutions with the management of state-owned financial capital in different levels and categories.

(7) Clarify the rights and responsibilities of state-owned financial institutions. We will fully respect the property rights of enterprises as legal persons, and grant state-owned financial institutions greater operational autonomy and risk responsibility. State-owned financial institutions shall strictly abide by relevant laws and regulations, strengthen operation and management, improve economic returns, and accept the administration and supervision of the government and its relevant departments and institutions in accordance with law. State-owned financial institutions shall, in accordance with laws and regulations and the provisions of the articles of association, actively support the implementation of major national strategies, establish and improve the corporate governance structure, improve the performance assessment, incentive and restraint, risk control, profit distribution and internal supervision and management systems, and improve the decision-making systems for major decisions, important personnel appointments and removal, major project arrangements and large-scale fund operation.

8. Strengthen asset management by focusing on capital management. Institutions that perform the duties of state-owned financial capital investors should accurately grasp their own responsibility positioning, scientifically define the management boundaries of investors, and gradually establish a list of management powers and responsibilities in accordance with relevant laws and regulations, so as to better achieve the goal of strengthening the management of state-owned assets by focusing on capital management. In accordance with the principle of substance over form, on the basis of corporate governance and by means of property rights supervision, the capital penetration management of equity investment in state-owned financial institutions is implemented to prevent insider control. In accordance with the concept of market economy, we will actively give play to the role of state-owned financial capital investment and operation companies, strive to innovate management methods and means, constantly improve incentive and restraint mechanisms, and improve the scientific and effective management of state-owned financial capital.

9. Preventing the loss of state-owned financial capital. We will strengthen internal and external oversight of state-owned financial capital, strictly review the qualifications of shareholders and the sources of funds, and accelerate the formation of a comprehensive supervision system with strong constraints. Adhere to the organic unity of investor management and supervision, strengthen investor supervision, and dynamically monitor the operation of state-owned financial capital. We will strengthen oversight over major adjustments in the distribution of state-owned financial capital, transfer of property rights, and overseas investment. Improve the internal supervision system of state-owned financial institutions, clarify the supervision responsibilities of relevant departments, improve the supervision system of the board of supervisors, and strengthen internal process control. We will strengthen external supervision, including auditing and evaluation, and public supervision, timely and accurately disclose the operating conditions of state-owned financial institutions in accordance with laws and regulations, and enhance the transparency of state-owned financial capital operations.

Third, optimize the state-owned financial capital management system

10. Improve the management system for the state-owned financial capital base. We will establish and improve a full-process and full-coverage management system for state-owned financial capital, improve property rights registration, property rights evaluation, property rights transfer and other management systems, and do a good job in state-owned financial capital verification, capital ownership definition, statistical analysis and other work. We will strengthen the management of the transfer of state-owned property rights in financial enterprises, and timely, comprehensively and accurately reflect the changes in the property rights of state-owned financial capital. We will standardize the transaction process of property rights of financial enterprises and ensure that the transfer process is open and transparent. Strengthen the evaluation and supervision of state-owned financial capital, and reflect the value of assets independently, objectively and impartially. We will integrate insurance protection resources for investors in the financial sector, improve the recovery and disposal mechanism for key state-owned financial institutions, and strengthen the self-rescue responsibility of shareholders, actual controllers and creditors.

11. Implementing the budget management system for state-owned financial capital operations. We will strengthen the management of state capital receipts and expenditures of financial institutions in accordance with the principles of unified policies, hierarchical management and comprehensive coverage. We will standardize the distribution relationship between the state and state-owned financial institutions, fully and completely reflect the income from state-owned financial capital operations, reasonably determine the proportion of profits that state-owned financial institutions turn over, and balance dividends and capital replenishment. In light of the needs of the distribution of state-owned financial capital, we will continuously optimize the budget expenditure structure of state-owned financial capital operations, establish a mechanism for capital replenishment and dynamic adjustment of state-owned financial institutions, and improve an effective mechanism for rational use of profits from state-owned financial capital operations. The budgets and final accounts for state-owned financial capital operations are subject to the review and supervision of the People's Congress and its Standing Committee in accordance with law.

(12) Strictly assess the performance of state-owned financial capital operations. By defining functions, dividing categories, clarifying differentiated assessment objectives by industry, implementing classification and assessment, improving the scientificity and effectiveness of assessment, comprehensively reflecting the asset operation level and social contribution of state-owned financial institutions, promoting financial institutions to strengthen operation and management, promoting the healthy development of financial institutions, and effectively serving the national strategy. Strengthen the use of performance appraisal results, and establish a reward and punishment linkage mechanism between the assessment results and the performance of the responsible person of the enterprise and the salary level of the employee.

(13) Improve the compensation management system of state-owned financial institutions. For the leading personnel of state-owned financial institutions, a differentiated compensation distribution method that matches the selection method, ADAPTS to the functional nature of the enterprise, and is linked to the performance appraisal shall be implemented. For the leading personnel of state-owned financial institutions appointed by the Party Central Committee, The State Council, local party committees and governments and related institutions, a positive incentive mechanism shall be established, and the basic annual salary, performance annual salary and tenure incentive income shall be reasonably determined. A market-based salary distribution mechanism will be implemented for professional managers who are selected and recruited by the market. We will explore ways to establish a system of accountability and compensation recovery for senior executives of state-owned financial institutions. We will explore ways to implement employee stock ownership plans for state-owned financial enterprises.

(14) Strengthen financial supervision and control by financial institutions and financial management departments. The financial department shall be responsible for formulating the financial budget system for financial institutions and financial management departments and supervising its implementation. We will further improve financial rules for financial enterprises, improve the independent financial budget system of the People's Bank of China and the financial systems of other financial regulatory departments, and establish financial management systems for financial holding companies and other financial groups and key financial infrastructure. Financial departments at all levels shall, according to law, exercise financial supervision over state-owned financial institutions at the same level, standardize the financial behaviors of enterprises, and safeguard the rights and interests of state-owned financial capital. We will continue to strengthen the financial management of the guarantee fund in the fields of banking, securities, insurance, futures and trust, improve the financial risk monitoring and evaluation mechanism, prevent and resolve financial risks, and protect the legitimate rights and interests of relevant parties.

4. Promote the sustained and healthy operation of State-owned financial institutions

15. Deepening the reform of the corporate shareholding system. We will intensify the reform of state-owned financial institutions into companies, and promote the overall restructuring and listing of qualified state-owned financial institutions. We will promote the steady implementation of corporate reform in financial institutions that rely on state power and credit support. According to the functional positioning of different financial institutions, the proportion of state-owned equity will be gradually adjusted to form an operating mechanism with diversified ownership structure, standardized behavior of shareholders, effective internal constraints, efficient and flexible operation.

(16) Improve the corporate governance structure. We will standardize the relationship between shareholders' (large) meetings, boards of directors, and boards of supervisors and management, improve the authorized operation system of state-owned financial institutions, and enable investors to perform their duties according to law. We will promote the building of the board of directors, improve the decision-making mechanism, and strengthen the important responsibilities of the Board of directors in major decision-making, selection and employment, and incentive mechanisms. We will rationalize the management system of state-owned financial institutions in accordance with the principle of separating market supervision from the responsibilities of investors. Establish a check and balance mechanism between the board of directors and the management, regulate the performance of duties by the chairman and general manager (president, president), and establish a sound supervision mechanism for decision-making implementation of state-owned financial institutions with equal powers and responsibilities, coordinated operation and effective checks and balances. Give full play to the role of the power organ of the shareholders (large) meeting, the decision-making organ of the board of directors, the supervisory organ of the board of supervisors, the executive organ of the senior management, and the leading role of the Party committee (Party group).

(17) Establish a classified and hierarchical management system for leading personnel of state-owned financial institutions. Adhere to the principle of the Party's management of cadres and the board of directors in accordance with the law, the board of directors in accordance with the law to choose management managers, management managers in accordance with the law to exercise the right to employ people, and constantly innovate the form of implementation. Party organizations at higher levels and institutions performing the duties of contributors of state-owned financial capital shall, in accordance with their administrative powers, strengthen the management of leading personnel of state-owned financial institutions, and implement different methods of selection and employment according to different types and levels of institutions. Promote the professional manager system, the board of directors to select and manage professional managers in a market-oriented manner, and establish a corresponding exit mechanism.

(18) Encourage state-owned financial institutions to return to their roots and focus on their main business. We will encourage state-owned financial institutions to firmly establish the idea that they benefit and lose from the real economy, strengthen and improve services in key areas and weak links, and develop new products and businesses based on the needs of the real economy. We will standardize comprehensive financial operations, carry out equity investments in accordance with laws and regulations, and prohibit state-owned financial enterprises from using their capital advantages to control non-financial enterprises. Give full play to the guiding role of performance goals, guide state-owned financial institutions to grasp the development direction, strategic positioning, and business focus, highlight the main business, do fine professional, and improve the steady development ability, service ability and core competitiveness.

(19) Urging state-owned financial institutions to guard against risks. Strengthen the main responsibility of state-owned financial institutions to prevent risks. We will encourage state-owned financial institutions to refine and improve their internal control systems, strictly abide by financial accounting rules and financial regulatory requirements, strengthen their own capital management and solvency management, and ensure adequate risk absorption capacity. We will urge state-owned financial institutions to operate prudently, strengthen control at the source of risks, dynamically investigate hidden risks such as credit risks, and improve risk prevention and emergency response mechanisms. Standardize the combination of industry and finance, strictly restrict and standardize the investment and participation of non-financial enterprises in state-owned financial enterprises in accordance with the access conditions of the financial industry, and the participation funds must use their own funds. Financial departments at all levels, relevant ministries and commissions of central and state organs and local governments shall not interfere with the legal supervision of financial regulatory departments.

5. Strengthen Party leadership over state-owned financial institutions

(20) Give full play to the leading role of Party committees (Party groups). We must ensure that the Party manages the Party and strictly governs the Party, ensure that the Party's leadership over state-owned financial institutions is unwavering, and give play to the leading role of party committees (leading groups). Adhere to the synchronous planning of party building and the reform of state-owned financial institutions, the synchronous setting of Party organizations and work institutions, the synchronous allocation of Party committee (Party group) leaders and party affairs staff, and the synchronous development of party building work. The Party committee (Party group) of state-owned financial institutions will ensure the direction, management of the overall situation, and implementation, focusing on the political direction, leadership, basic systems, major decisions and party building, and effectively assume and implement the responsibility of strictly managing the Party and governing the Party. The strengthening of the Party's leadership and the improvement of corporate governance are unified, the overall requirements for party building are incorporated into the statutes of state-owned financial institutions, the statutory status of the Party committee (Party group) of state-owned financial institutions in the corporate governance structure is clarified, the content and procedural rules of the Party committee (Party group) to participate in major decisions are standardized, and the study and discussion of the Party committee (Party group) meeting is the pre-procedure for the board of directors to make decisions on major issues. Reasonable determination of the Party committee (Party group) leading group members and the board of directors, the board of supervisors, the management of two-way entry, cross-employment ratio.

21. Further strengthen the building of leading teams and talented personnel. We will adhere to the principle that the Party exercises control over cadres, uphold standards for cadres, and build high-quality leading groups. In accordance with the requirements of loyalty to the Party, courage to innovate, efficient governance of enterprises, promising development of enterprises, and integrity, the head of state-owned financial institutions will be selected and strengthened, and the "one post and two responsibilities" will be earnestly implemented. The Party committee (Party group) leadership and the board of directors in accordance with the law to select the management, management in accordance with the exercise of human rights, organic combination, increase market-oriented selection and recruitment. We will improve the assessment system for leading groups. Cultivate excellent managers with both virtue and ability, and cultivate compound talents with both economic and financial theory and practical experience. Formulate a plan for high-end financial talents, attach importance to discovering talents from the front line, accurately introduce overseas high-level talents, and accelerate the establishment and improvement of a system and mechanism for state-owned financial institutions to gather talents.

22. Earnestly implementing the "two responsibilities" of comprehensively and strictly governing the Party. Tighten the main responsibility of the Party committee (Party group) of state-owned financial institutions and the supervision responsibility of discipline inspection and supervision institutions. Improve the professional ethics restraint system for leading personnel of state-owned financial institutions, strengthen party spirit education, rule of law education, warning education, and guide leading personnel of state-owned financial institutions to firm ideals and beliefs, correctly perform their duties and powers, work incorruptly, and be diligent and dedicated. The relevant departments shall formulate detailed rules for the implementation, strictly supervise and implement them, and restrict the staff of the financial departments from working in financial institutions within the scope of the business under the jurisdiction of their original posts or directly related to their original business after leaving their posts. Standardize the behavior of employees of state-owned financial institutions who work in units related to their original work business after leaving their jobs, improve the avoidance system for employees of state-owned financial management departments and state-owned financial institutions, prevent internal cooperation and interest transfer, and prevent moral hazard. We will strengthen discipline inspection and supervision, inspection supervision and daily supervision. We will strictly implement the eight-point Regulations of the Central Committee and the rules for their implementation. We will further promote the improvement of Party conduct and clean government and the fight against corruption, and strive to build an effective mechanism whereby leaders of state-owned financial institutions dare not, cannot and do not want to commit corruption.

6. Strengthen implementation in a coordinated manner

23. Strengthening the rule of law. We will improve the system of laws and regulations on the management of state-owned financial capital, and do a good job in the enactment, reform, repeal and interpretation of relevant laws and regulations. In accordance with legal procedures, we will accelerate the formulation of regulations on the management of state-owned financial capital, clearly authorize the operation system, and lay a solid legal foundation for improving the management system and mechanism of state-owned financial capital. We will study the establishment of a unified system of contributors to state-owned financial capital and clarify their rights, obligations and responsibilities. We will improve and implement all supporting policies for managing state-owned financial capital.

24. Strengthening coordination and cooperation. Institutions that perform the duties of state-owned financial capital donors should strengthen communication, coordination and information sharing with the People's Bank of China and financial regulatory departments to form joint efforts. Institutions that perform the functions of state-owned financial capital contributors shall take the initiative to seek the opinions of relevant departments when formulating and improving the management system of state-owned financial capital and involving the relevant supervision duties of other financial management departments. When formulating and issuing relevant regulatory policies, other financial management departments shall timely inform the institutions that perform the duties of state-owned financial capital contributors of the relevant situation.

(25) Strict accountability. We will establish a sound mechanism to investigate and reverse the responsibility of state-owned financial institutions for major decision-making errors, dereliction of duty and dereliction of duty, and strictly investigate and punish acts of embezzlement, embezzlement, transfer and squandering of state-owned financial capital. Establish and improve the supervision and accountability mechanism for the management of state-owned financial capital, and increase punishment for dereliction of duty that fails to detect the formation of risks, and for dereliction of duty that fails to detect and deal with risks in a timely manner. Those who do not pursue, hide or report major violations of law and discipline, or fail to deal with them, shall strictly investigate the responsibilities of relevant departments and relevant personnel, and resolutely investigate criminal responsibility in accordance with the law if a crime is constituted.

(26) Strengthening information disclosure. Establish a unified statistical, monitoring and reporting system for state-owned financial capital, fully reflect the total amount, investment, distribution, disposal, and income of state-owned financial capital, prepare government balance sheets, and report on the reform of state-owned financial institutions, asset supervision, risk control, and compensation of senior managers. The situation of state-owned financial capital shall be fully reported to the Party Central Committee, and the management of state-owned financial assets shall be reported to the Standing Committee of the National People's Congress in accordance with regulations, and the specific reporting responsibility shall be borne by the Ministry of Finance. Financial departments at all levels regularly report to the governments at the same levels on the management of state-owned financial capital. The State Council and local governments shall supervise the performance of the functions of the institutions that perform the duties of investors, publicize the state of state-owned financial capital to the public in accordance with the law, and accept the supervision of the public.

Party committees and governments at all levels should unify their thinking and earnestly fulfill their leadership responsibility for improving the management of state-owned financial capital with a high sense of political responsibility and historical mission. It is necessary to formulate implementation opinions based on the present opinions and in light of the actual situation, strengthen overall coordination, clarify the division of responsibilities, refine objectives and tasks, strengthen supervision and implementation, and ensure that the management of state-owned financial capital is effectively strengthened.