China has taken a significant step toward formulating a foundational and comprehensive law on state-owned assets, as a draft law was submitted on Monday for its first deliberation at an ongoing session of the Standing Committee of the National People's Congress.

According to legal experts, the legislation is poised to improve the legal system for enhancing the efficiency of state-owned asset governance.

Comprising 62 articles across seven chapters, the draft law upholds the Party's leadership over the governance of state-owned assets, seeks to standardize management and oversight practices, and aims to ensure lawful protection and efficient utilization of the assets, thereby promoting the high-quality development of the state-owned sector.

As the scale of state-owned assets continues to expand and the operating models of state-owned enterprises become increasingly diversified, there have been growing calls in recent years for comprehensive legislation to strengthen oversight of all types of state-owned assets.

The Central Economic Work Conference held on December 11 also stated that "China will intensify efforts to address involution, formulate and implement a reform plan involving state-owned assets and state-owned enterprises, and improve supporting regulations and policies for the law on promoting the private sector. The country will also continue to deepen comprehensive reforms in capital market investment and financing," according to Xinhua.

(With input from Xinhua)