Main responsibilities of the State-owned Assets Supervision and Administration Commission of GuangZhou Municipality are defined as follows:

1. Assuming, with mandate from the Municipal Government, the execution of responsibilities on behalf of the subscribers in accordance with relevant laws and regulations such as Company Law of the People’s Republic of china and Provisional Regulations on Supervision and Administration of State-owned Assets in the Enterprises.

2. Providing policy orientation for and promoting the reforms and reorganization of state-owned enterprises under the jurisdiction of this commission; stepping up administration of state-owned assets by supervising the maintenance and appreciation of the value of these assets; pressing ahead with the implementation of the modern enterprise system within state-owned enterprises and with the improvement of the corporate governance structure by legal persons; planning the strategic restructuring of state-owned assets and promoting the reasonable flow of these assets in order to achieve the strategic adjustment in structure and the lay-out of the state-owned enterprises controlled by the Guangzhou Municipal Government.

3. Implementing administrative measures ranging from appointing and removing enterprise executives in accordance with legal procedures, to checking on their performance as the basis whereupon to grant rewards or impose sanctions; putting into place a sound personnel mechanism to cater for the needs of the socialist market economy and of modern enterprises, as well as a system of incentives and disincentives regulating entrepreneurial practices.

4. Appointing boards of supervisors and financial inspectors general to enterprises under the jurisdiction of this commission and assuming the administration of the said boards and inspectors general.

5. Supervising the maintenance and appreciation of the value of state-owned assets through statistics and auditing; establishing an evaluation system for state-owned enterprises performance and revising the targets set for maintenance and appreciation of the value of state-owned assets and drafting assessment standards; standardizing property rights exchange of state-owned enterprises and safeguarding the rights and interests of subscribers.

6. Implementing regulations and policies on assets management and supervision formulated by the Central Government and Guangdong Provincial Government and Guangzhou Municipal Government; drafting local regulations and policies and formulating normative documents on state-owned assets management and supervision; providing policy orientation for and supervising the assets management of state-owned enterprises within the municipality in accordance with the laws.

7. Establishing a budget system by working out revenues and expenditure budgets for the performance of state-owned enterprises; assuming responsibilities for the levy, disposal and supervision of assets returns realized by enterprises under the jurisdiction of this commission.

8. Fulfilling other tasks assigned by either the Guangzhou Municipal Government or departments in charge of the supervision and administration of state-owned assets at higher levels.