The State Council has recently approved the 'Opinions on the Major Areas of Work In Deepening Reform of Economic System 2016' issued by the National Development and Reform Commission, of which the reform of state-owned enterprises (SOEs) is ranked number one among all reforms, yet to date, the progress is still slow.

Looking at the root causes, the main reason remains that the reform of SOES involves powerful interest groups.

We are of the view that the SOEs reform should take the bull by the horns and steering the reform from managing the SOEs to managing the capitals, if this reform can deliver a breakthrough, this will be the game changer.