China is set to improve the financial management system of enterprises by using computer technology over the next three years to reform their overall management.

Li Rongrong, vice-minister of the State Economic and Trade Commission (SETC), said the proper management of state assets rely on an effective handling of enterprise assets.

"Only by knowing their own assets, can enterprises properly handle them and make crucial decisions," Li said.

A survey conducted by SETC shows that no more than 30 percent of Chinese enterprises have established a financial management system or internal management mechanism. In general, the enterprises' management of funds are loose, inaccurate and lack of supervision.

An official with the SETC said that by improving the financial management system of enterprises, the country is aiming to transform the old management pattern.

The SETC, which is mainly in charge of enterprise reform, will take concrete steps in achieving this goal. First, it will help enterprises establish a concentrated fiscal management and budgeting system, and tighten control over cash inflow in the subsidiary companies.

Secondly, supervision will be enhanced in the fund management of the enterprises by designating accountants and setting up an auditing system. Thirdly, SETC and related departments will join hands in promoting the utilization of computers in fund management.

(People's Daily 11/15/2000)