Key SOEs told to focus on core, shed sideline work

State-owned enterprises directly administered by the central government are being urged to strip off sideline operations that distract from the focus on core businesses.

These enterprises, also known as central SOEs, are expected to achieve more than 100 billion yuan ($15.3 billion) in additional profits by the end of 2017 through reducing costs and improving efficiency.

The decision to deepen SOE reform as well as improve the quality and profitability of these companies was made on Wednesday at an executive meeting of the State Council that was presided over by Premier Li Keqiang.