China's SOE reforms to increase efficiency and competitiveness

China's reform of the state-owned enterprise (SOE) sector is likely to gain further momentum during 2016-2020, with swifter action at the local government level. A long-awaited SOE reform blueprint was announced in September 2015. 

While it was a disappointment to most observers on its release, more changes are expected to happen gradually, especially as the economy weakens further. 

"Overall, the 13FYP will reiterate the SOE reform plan in terms of SOE classification and an evaluation system, which will help to introduce marketbased incentives and modern corporate structures, both critical steps to increasing the efficiency and competitiveness of Chinese SOEs", says Barclays.