A GUANGZHOU vice-mayor has revealed that the introduction of a shares system in the ailing state-owned sector will be speeded up to enliven its operation. Wu Liang said the municipal government would gradually reduce its direct interference with the management of assets of state-owned enterprises. The supervision system would be replaced by a shares system, he said. According to the semi-official China News Service (CNS), Mayor Li Ziliu said the city planned to allow about one-fifth of Guangzhou's state-owned enterprises to issue shares by the end of the year. He also laid down concrete measures over the development of a share system, but CNS did not give details. Guangzhou, the capital of Guangdong, has been urged by central leaders to play a pioneer role in the exploration of new ways to develop China's quasi-capitalist socialist economy. The CNS dispatch said Guangzhou planned to select a batch of state-owned enterprises for reforms towards the shares system this year. The firms would have to meet the requirements of the state's industrial policy and the introduction of the shares system, it said. They would be allowed either to issue shares to the public, or be listed in the Shanghai and Shenzhen stock exchanges, the report said. It added that the city would continue to look into the feasibility of listing those companies on the Hongkong Stock Exchange. A batch of collective enterprises which had a strong business record would be chosen to co-operate with companies in Hongkong through the ''exchanges of shares''. CNS quoted sources as saying that the city had required projects whose total investments exceeded 30 million yuan (HK$40.47 million) to have between 25 and 30 per cent of their funds gathered through the issuing of bonds. The municipal government would also strive for the go-ahead from central Government to develop a pilot scheme in the city to introduce its own stock exchange. Guangzhou is among a handful of cities on the mainland which are fighting to open a third stock exchange after Shanghai and Shenzhen.