The Guangdong Government will not make major leadership or assets changes to enterprises recently transferred to local authorities by the military, police and political and legal organs, according to the People's Daily.
It was the first news about the enterprises' fate since the December 15 deadline for the transfer.
The aim of the policy was to establish 'independent management, responsibility for profits or losses, and self-discipline' for the businesses, the report said.
The 420 enterprises transferred to the Guangdong Government had total assets of 11.23 billion yuan (HK$10.5 billion).
Their industrial output was 1.5 billion yuan, with sales of 3.3 billion yuan and profits of 120 million yuan. They paid 100 million yuan tax.
In order to ensure the enterprises' stability, the report said the Government had instructed the large enterprise groups to continue to run their subordinate enterprises.
