China moves to stop SOE executives overspending

Chief executives of China's state-owned enterprises must not spend their company's budget excessively on purchasing cars and other assets, according to a government ban released Tuesday.

The statement came in a 12-article ban, which was jointly released by the Ministry of Finance, the Ministry of Supervision, the National Audit Office and the State-owned Assets Supervision and Administration Commission, aiming to further regulate the consumption of SOE executives.

Compared with similar regulations, the government has specified prohibitions for consumption activities of SOE executives in the ban.

According to the ban, executives are forbidden to purchase business cars and high-end office supplies as well as decorate offices if the enterprises suffer losses.

SOE executives are also banned from using companies' funds to cover expenses incurred by their families and relatives.

The ban requires SOEs to strengthen management over the annuities and housing subsidies of executives, and inform employees of related duty consumption regulations in certain ways.

It also orders supervision authorities and state-assets regulators to step up regular checks and inspection, while related supervision departments of SOEs should also perform their duties.