In a regular conference convened recently, the State Council of China pointed out that it is a remarkable accomplishment for the State-Owned Central Enterprises (SOCE) to achieve 16.4% increase in profit during the first seven months of the year; compares to the 3.7 % drop same period last year. Deleveraging the SOEs should be the central focus of the Central Government's deleveraging program, and emphasis should be given on the reduction of liability rate of (SOCE). Meanwhile, the state should continue supporting institutions that have adapted debt for equity swap and its other funding channels, pushing for the downsizing of thermoelectric power, electrolysis aluminum and construction materials production. From the operational aspect, the main objective of SOEs is to reduce the leverage while having a good business performance, whereas the main objective of privates sectors will be removing their excess productivity.