It is understand that China's state council has finally approved the use of Singapore’s Temasek model to reform China’s stated owned enterprises ("SOE") to achieve the very much needed growth.

Anbound’s scholars are of the view that the mutual fund model is a better way to reform the SOE.

The core of the mutual fund model is to shift the focus of SOE from the administration of SOE to asset management by transforming the SOE into capital based enterprises vide the establishment of mutual fund and to achieve the goal of value maintenance and appreciation of enterprises’ state-owned capital while allowing the SOE to operate based on the marketization business model.

Once the reform of state-owned enterprises by way of mutual fund works, this will help bridges the many gaps between the various systems in China’s economy and society.