Decision of the Standing Committee of Shanghai Municipal People’s Congress on Strengthening the Supervision over the Administration of State-owned Assets was adopted at the 31^st Session of the Standing Committee of the 15^th Shanghai Municipal People’s Congress on May 21, 2021, and is hereby promulgated. It shall be effective as of May 21, 2021.

Standing Committee of Shanghai Municipal People’s Congress

May 21, 2021   

 

Decision of the Standing Committee of Shanghai Municipal People’s Congress on Strengthening the Supervision over the Administration of State-owned Assets

(Adopted at the 31^st Session of the Standing Committee of the 15^th

Shanghai Municipal People’s Congress on May 21, 2021)

 

With a view to further strengthening the supervision over the administration of the State-owned assets in this Municipality, promoting the modernization of State-owned assets governance system and capacity, giving better play to State-owned assets’ rolein such aspects as serving economic and social development, guaranteeing and improving people’s livelihood, protecting ecological environment, and ensuring state organs and public institutions perform their duties economically and efficiently, the following Decision has been made in accordance with the Law of the People’s Republic of China on the Supervision by the Standing Committees of the People’s Congresses at Various Levels, and the Decision of the Standing Committee of the National People’s Congress on Strengthening the Supervision over the Administration of State-owned Assets, and other relevant laws and administrative rules, and in the light of the actual circumstances of this Municipality: 

I. The Standing Committee of the Municipal People’s Congress shall, according to the decisions and arrangements of the CPC Central Committee and the CPC Municipal Committee on State-owned assets administration and governance, focus on the supervision over the government’s administration of State-owned assets, persist in the supervision according to law and the supervision in the correct way, persist in unification and full coverage, persist in problem-orientation, and perform its duty of supervising State-owned assets legally, fully and effectively.

Every year, the Standing Committee of the Municipal People’s Congress shall listen to and deliberate the report of the Municipal People’s Government on State-owned assets administration, comprehensively apply such statutory supervision modes as law enforcement inspections, inquiries and interrogations, and specific problem investigations, and perform its duty of State-owned assets supervision. The Standing Committee of the Municipal People’s Congress shall formulate a five-year plan for State-owned assets supervision to make an overall arrangement of the work of State-owned assets supervision within its term, and formulate annual work plans for the specific implementation of the supervision work.       

II. The Municipal People’s Government shall, according to the mode of an integration of comprehensive report and special reports, do a good job of reporting the annual administration of State-owned assets. The comprehensive report and the special reports on State-owned assets administration shall comply with the provisions of the State, and reflect the focus of the annual deliberation by the Standing Committee of the Municipal People’s Congress.

The relevant departments of the Municipal People’s Government shall establish and perfect an evaluation index system that reflects the characteristics of administration of different kinds of State-owned assets, so as to reflect the administration situation and effects objectively and accurately in an all-round manner.

The municipal audit department shall, as required by the CPC Central Committee and the CPC Municipal Committee, propel the full coverage of auditing in an in-depth manner, and on the principle of truthfulness, legality and efficiency and according to its statutory functions and duties, intensify the auditing dynamics on State-owned assets, and form special auditing reports, which shall serve as the sub-reports of the auditing work report on the annual budget execution and other financial revenue and expenditure submitted by the Municipal People’s Government to the Standing Committee of the Municipal People’s Congress.        

III. The Standing Committee of the Municipal People’s Congress shall organize and carry out special investigations on the annual administration of State-owned assets, and the Financial and Economic Committee of the Municipal People’s Congress shall, jointly with relevant special committees and the Budget Commission of the Standing Committee, ensure the investigationson specific topics are well organized. Such investigations organized by the relevant committees may invite the participation of the deputies to the Municipal People’s Congress, relevant experts and representatives of residents. The situation of the investigations shall be reported to the Standing Committee of the Municipal People’s Congress.   

The Standing Committee of the Municipal People’s Congress shall, according to the unified national deployment, and in the light of the actual circumstances of this Municipality, carry out the performance evaluation of State-owned assets administration, and explore the establishment of a third-party evaluation mechanism.

The relevant special committees of the Municipal People’s Congress shall undertake the duty of preliminary deliberation of the report on the government’s administration of State-owned assets. 30 days before the session held by the Standing Committee of the Municipal People’s Congress, the Financial and Economic Committee shall, independently or jointly with other relevant special committees, carry out the preliminary deliberation on the basis of the special investigations, and put forward the opinions on the preliminary deliberation. 

The Budget Commission shall undertake the specific work of the Municipal People’s Congress on the supervision over the State-owned assets in this Municipality, and assist such relevant special committees as the Financial and Economic Committee in the relevant work on the preliminary deliberation. Forty five days before the session held by the Standing Committee of the Municipal People’s Congress, the Budget Commission shall organize the hearing of the opinions and suggestions of the deputies to the Municipal People’s Congress, and listen to the main contents of the report introduced by the relevant departments of the Municipal People’s Government and put forward its analysis and opinions.

Each special committee of the Municipal People’s Congress shall strengthen the integration of the supervision over the routine work and the supervision over the State-owned assets, and in the process of carrying out law enforcement inspections and special investigations and hearing the government’s special reports, take the State-owned assets administration and the performance status of its counterpart government department as an important content, find out problems and put forward its opinions thereon, and coordinate in propelling the People’s Congress’ supervision over State-owned assets administration.  

IV. The Standing Committee of the Municipal People’s Congress shall,when deliberating the report on State-owned assets administration, and conducting State-owned assets supervision, pay special attention to the following contents with the focus on the actual situation of each item:

1. the carrying out and implementation of the guiding principles, policies and major decisions and arrangements of the CPC Central Committee and the CPC Municipal Committee on theadministration of State-owned assets and the reform and development of State-owned enterprises; 

2. the implementation of relevant laws and rules;

3. theimplementation of the opinions and decisions of the Standing Committee of the Municipal People’s Congress on relevant deliberations, and the consolidation of the rectification and the working movement of the major problems found in the supervisions and investigations;

4. thereform and perfection of the administrative system for various State-owned assets and the propelling of the upgrading of administrative modernization;

5. the service of enterprises’ State-owned assets for the national strategy and the overall workingsituation of this Municipality; the raising of the competitive, creative, controlling, impact, and risk preventive capability of the State-owned economy; the optimizing of the layout structure of State-owned assets, the implementationof the long-term working mechanism of stabilizing growth and promoting development, the upgrading of the quality of State-controlled listed companies; the raising of enterprises’core competitiveness, the deepening of the construction of innovation systems, the acceleration of the breakthrough of key core technologies, the raising of the innovation source ability, and the intensifying of the financial sector’s service for the real economy; and,the optimizing of the policy and system for the settlement of non-performing assets of State-owned enterprises, and the establishmentof new models and channels for vitalizing such non-performing assets;

6. the performance of administrative and institutional State-owned assets in ensuring such units’economical and efficient performance of their duties, and the enhancementof the availability and fairness of basic public services; the implementation of units’ daily assets administration and administrative responsibility; the carrying out of their asset informatization administration; and the sharing and using efficiency of their assets; 

7. the support of State-owned natural resource assets to economic and social development and the improvement of ecological environment quality, and the implementation of such obligatory targets as natural resources protection and effective use, protection of the ecological environment, and energy conservation and emission reduction;

8. the maintenance and appreciation of State-owned capital, the prevention of State-owned assets loss and the revenue management; and the regulation of State-owned capital operation, and the enhancement of supervision over State-owned property rights transaction;

9. the fulfillment of social responsibilities, and the service and guarantee for the key fields of people’s livelihood;

10. the rectification of problems found in auditing, especially the rectification of the problems that have not been rectified yet or are being rectified, the systematic and institutional problems, and the common and tendentious problems; and

11. other important situations concerning State-owned assets administration.

The Standing Committee of the Municipal People’s Congress shall carry out special subject inquiries when listening to and deliberating the comprehensive report on State-owned assets administration within one year before the expiry of its term, and may carry out such inquiries when listening to and deliberating the special reports in other years in its term. As for the problems in State-owned assets administration, the Standing Committee of the Municipal People’s Congress may make interrogations and specific problem investigations according to law, and may make a decision according to the deliberation and supervision situation. 

V. The Municipal People’s Government shall establish and perfect a rectification and accountability mechanism. It shall make a rectification and accountability list according to the opinions on deliberation, the report on special subject investigation, and the auditing report, propel the rectification of problems in a classified way, and legally prosecute the law- or- rule-breaking acts for accountability. The rectification, the accountability prosecution, and together with the study and handling of the opinions on deliberation by the Standing Committee of the Municipal People’s Congress shall be reported to the Standing Committee of the Municipal People’s Congress. The Standing Committee of the Municipal People’s Congress may listen to the report and make a deliberation.   

This Municipality shall, on the principle of steady progress, establish and perfect a follow-up supervision mechanism for the rectification and the accountability. The Standing Committee of the Municipal People’s Congress shall establish a supervision list system for the prominent problems and the typical cases, under which the relevant special committees and the Budget Commission shall carry out the specific follow-up supervision, and urge the implementation of rectifications.

This Municipality shall establish and prefect an effective mechanism dovetailing the supervision over State-owned assets by the people’s congress and the supervision by the supervision committee, strengthen the relevant information sharing and work contact between the supervision over State-owned assets by the people’s congress and the supervision by the supervision committee, and promote the accountability prosecution for rectification.     

VI. This Municipality shall perfect an administrative system for State-owned capital operation budget, and intensify the overall restriction and supporting guarantee role of the State-owned capital operation budget in the overall layout, investment operation, and revenue management of State-owned assets. It shall perfect the working mechanism dovetailing assets administration and budget administration, and reflect in an all-round way the relevant situation of State-owned assets such as the infrastructure and government investment funds, and the projects of public and private partnership formed by the budgetary funds.

The problems reflected and the opinions raised in the report and supervision on State-owned assets administration shall serve as an important basis for the budget review and important reference for the report on the review results of the next year.

The Standing Committee of the Municipal People’s Congress shall enhance the integration of the supervision over the rectification of auditing findings and the supervision over State-owned assets, strengthen follow-up supervisions over the rectification of the problems in State-owned assets administration found in auditing, and push the government to perfect State-owned assets administration and to establish and prefect the relevant systems. 

VII. The working organs of the Standing Committee of the Municipal People’s Congress shall promptly and legally announce to the deputies to the Municipal People’s Congress and publicize to the society the five-year plan for State-owned assets supervision, the report on State-owned assets administration, the opinions on deliberation, the report on special subject investigations, and the relevant special committees’ preliminary opinions on deliberation, the study and handling of the opinions on deliberation, the rectification, the accountability prosecution, and the decision implementation by the Municipal People’s Government. The Municipal People’s Government and its departments shall promptly disclose the State-owned assets statements of the government, the departments and the units according to the provisions, except for those that shall not be disclosed according to law. 

VIII. The relevant departments of the Municipal People’s Government shall establish a unified and all-round State-owned assets information sharing platform of this Municipality, realize the interconnection among relevant departments and units, and regularly submit the relevant data and information on State-owned assets to the Budget Commission via the budget network supervision system of the Municipal People’s Congress. They shall, as needed by the Municipal People’s Congress’ supervision over State-owned assets, promptly provide such information and data as State-owned assets administration information other than the information in the interconnected network.  

The Standing Committee of the Municipal People’s Congress shall give a full play to the pre-warning and analysis role of the budget network supervision system of the Municipal People’s Congress. The Budget Commission shall promptly contact the relevant departments of the Municipal People’s Government to communicate the pre-warning information, and promptly report vital circumstances to the Standing Committee of the Municipal People’s Congress; the relevant departments of the Municipal People’s Government shall promptly give a feedback of the handling and urge the problem to be solved effectively.    

The Budget Commission shall perfect its mechanism of work contact with the relevant departments of the Municipal People’s Government, strengthen thesupervision and coordination, promptly collect relevant information, notify the relevant committees thereof, and report it to the Standing Committee of the Municipal People’s Congress.  

The Budget Commission shall, according to the typical problems and cases found upon supervision by the Standing Committee of the Municipal People’s Congress and generally reflected by the public, put forward suggestions, investigate the relevant departments’ and units’ administration of State-owned assets if such suggestions have been specially approved by the Director’s Meeting of the Standing Committee of the Municipal People’s Congress, and the governments at all levels and the relevant departments and units shall assist and cooperate actively.

IX. The Municipal People’s Government shall do a good job of rectifying the problems raised in the supervision over State-owned assets by the Standing Committee of the Municipal People’s Congress. In case of an ineffective rectification or an inadequate rectification, the Standing Committee of the Municipal People’s Congress may carry out special subject inquiries, interrogations and specific problem investigations according to law, and may, based on the deliberation and supervision situation, make a decision according to law.

X. The standing committees of all district people’s congresses shall establish and perfect a system of supervising State-owned assets administration by reference to this Decision, intensify the supervision forces, and perform the people’s congresses’ duty of State-owned assets supervision according to law.

XI. This Decision shall be effective as of May 21, 2021.