The State-Owned Assets in Enterprises Law was promulgated in 2008 and entered into force on May 1, 2009.

There are 77 articles in total.

The key points are as follows:

1.The state-owned assets in enterprises refers to rights and interests arising from the state’s capital contributions of all types to enterprises. (Article 2)

2.The state-invested enterprises refers to wholly state-owned enterprises, wholly state-owned companies, state-controlled companies and partly state-owned companies to which the state contributes capital. (Article 5)

3.The State-owned Assets Supervision and Administration Commission under the State Council and state-owned assets supervision and administration organs established by local governments perform investors’ duties for state-invested enterprises on behalf of the governments at the same level. (Article 11)

4.Any transfer of state-owned assets shall be conducive to the strategic adjustment of the distribution and structure of the state sector of China’s economy, shall prevent any loss of state-owned assets, and shall not harm the legitimate interests of any party to the transfer. (Article 52)

5.Where, in the course of any transaction involving a related party, the transfer of state-owned assets, or any other matter, the parties concerned collude maliciously with each other to harm the interests of the owner of the state-owned assets concerned, the relevant transaction shall be invalid. (Article 72)