The reform of state-owned enterprises (SOEs) is a difficult task. The third plenary session of the 18th CPC National Congress listed over 300 reform tasks, of which the progress of the SOEs reform has been slow.

The difficulties in SOEs reform lie in the adjustment of interests, the lack of systematic thinking as well the lack of a carefully-designed reform blueprint.

The research team at ANBOUND Consulting is of the view that the core problem of the SOEs reform is not that the SOEs do not know how to conduct business. The core purpose of the SOEs reform is to realize "three socialization outcomes", namely the socialization of ownership, socialization of supervision and socialization of resources.

Market is the key to the realization of “three socialization outcomes” and the switch to turn on the market is the mutual fund model proposed by ANBOUND Consulting.