Party, government and legislative organs above county government level in Guangdong have been ordered to drop business activities by the end of the year.
The decision, made at a conference on Thursday attended by provincial leaders, followed the central Government's pledge to wind up the practice of the Communist Party, military, State Council and judicial departments having large business connections.
'All party, government and legislative organs beyond the county government level of Guangdong province will be required to hand in companies they formerly ran between October 15 and November 20 this year,' Gao Siren, the deputy provincial party secretary, told Guangdong media.
Large enterprises will be taken over by the Personnel and Organisation Departments of the provincial Government. Mr Gao said the assets of other enterprises would be managed by finance departments at relevant government levels. Loss-making firms were likely to be shut down.
'If officials or departments are found transferring, selling illegally or hiding assets from investigators, they will be severely punished,' Mr Gao added.
Investigators have been taking stock of some enterprises' assets since Thursday. Investigations are expected to be wrapped up by early July, while detailed measures to sever ties will be worked out before August 10.
