The State Economic and Trade Commission is finalising a list of state-controlled public companies to launch an experiment by Beijing to cut government stakes in non-key industries.
Sources said the list was expected to be released by December, and marks a key move by the state to restructure rotten state enterprises by reducing inefficient intervention in the economy.
'The commission has compiled a preliminary list of listed state companies for the experiment, which should be out by the end of the year,' a source said.
This came as China Securities Regulatory Commission chairman Zhou Zhengqing confirmed market rumours that Beijing would allow some state companies to pilot the scheme.
'We will choose some state-controlled listed companies with a good reputation and have strong potential to sell state shares to raise funds, provided this does not affect the state's majority control [in these companies] and the stability of the market,' he told Xinhua. He did not elaborate.
A broad agreement to reduce state control in non-strategic industries was reached at the Chinese Communist Party's central committee's fourth plenum last month.