65 Regulations of Shenzhen Special Economic Zone on the Management of State-owned Assets[深圳经济特区国有资产管理条例（1995）]

Archived（May 28, 2018）

(Adopted at the First meeting of the Standing Committee of the Second Shenzhen Municipal People's Congress on July 26, 1995)

Chapter Ⅰ General Provisions

Article 1 In order to set up the system of management and operation of the state-owned assets fitting in with the socialist market economy, safeguard the safety and appreciation of the state-owned assets, promote the reasonable circulation and optimized allocation of the state-owned assets, maintain the lawful rights and interests of the owners and operators of the state-owned assets, as well as consolidate and develop the state-owned economy, these regulations are formulated in accordance with relevant provisions of the Constitution and the basic principles of laws and administrative regulations, as well as the actual circumstances of Shenzhen Special Economic Zone.

Article 2 “State-owned assets” in these regulations refer to the following operational state-owned property formed through the investment of Shenzhen municipal or district people’s government or acquired by other means according to law:

(1) the chattels;

(2) the real estate;

(3) the intellectual property and other intangible properties;

(4) the currency and securities;

(5) other rights of property.

Article 3 These regulations shall apply to the possession, utilization, earning, disposal, protection and supervision of the state-owned assets.

The possession, utilization, earning, disposal, protection and supervision of the public state-owned property and the state-owned property in the form of natural resources shall be conducted according to relevant laws and regulations.

“Public state-owned property” in the second paragraph of this Article include the state-owned property for official use, the state-owned property for public use and the state-owned property for institutional use.

Article 4 The management of state-owned assets shall observe the principles of separating the government’s function of socioeconomic management from the owner’s function of the state-owned assets, separating the management of state-owned assets from the operation of state-owned assets, and separating the ownership of state-owned assets from the propriety right of enterprise as legal person.

The government departments and other state organizations shall not operate the state-owned assets directly unless the laws and regulations stipulate otherwise.

Article 5 The principle of the unification of the investment, benefit, supervision and management of the state-owned assets shall be observed.

Article 6 The People’s Government of Shenzhen Municipality (hereinafter referred to as the municipal government) sets up the management committee of state-owned assets, which exercises the managerial function to the state-owned assets on behalf of the municipal government.

The management committee of state-owned assets authorizes the operating institution of state-owned assets to exercise the operating function to the state-owned assets.

The enterprise legal person enjoys the property ownership of legal person to the state-owned assets of this enterprise according to law.

Article 7 The earnings of the state-owned assets shall be separately listed in the budget, and the special earnings shall be used for special expenditure.

Article 8 The administrator and operator of the state-owned assets shall safeguard the safety and appreciation of the state-owned assets.

Article 9 The state-owned assets shall be protected by the law. Any organizations or individuals are prohibited to defalcate or damage the state-owned assets by any means.

Chapter Ⅱ The Managerial Organization of State-owned Assets

Article 10 The powers and duties of the management committee of state-owned assets are the followings:

(1) to implement the laws, regulations and polices of the management of state-owned assets, to draft relevant implementing rules and to organize the implementation after being approved by the municipal government;

(2) to lay down the regulatory frameworks relevant to the management of state-owned assets;

(3) to inspect and supervise the implementation of the laws and regulations concerning the management of the state-owned assets, and to punish the malfeasance according to law;

(4) to decide the establishment, alteration and termination of the operating institution of state-owned assets;

(5) to confirm the qualification of holding the posts of board chairman, manager and chief financial inspector of the solely state-owned enterprise and the state-owned holding enterprise;

(6) to confirm the qualification of the representative of state-owned assets’ property right;

(7) to appoint and dismiss, assess, award and punish the manager, assistant manager and members of the board of supervisors of the operating institution of state-owned assets according to the administrative powers and procedures of the cadre;

(8) to appoint and dismiss, assess, award and punish the board chairman, manager and chairman of the board of supervisors of the first class municipal solely state-owned enterprise, and to recommend, assess, award and punish the board chairman, manage and chairman of the board of supervisors of the first class municipal state-owned holding enterprise;

(9) to draw up the income and budge draft of the state-owned assets;

(10) to examine and approve the long-term development plan, the annual operating plan and the utilization plan of the incomes of the operating institution;

(11) to examine and approve the report of annual operation and the report of major matters of the operating institution;

(12) to coordinate the major matters relevant to the management of state-owned assets, the state-owned property for public use and the state-owned property in the form of natural resources, and to refer them to the municipal government for decision;

(13) to direct and supervise the work of the district state-owned assets managerial organizations;

(14) to supervise and manage the state-owned assets in Taiwan, Hongkong, Macao and foreign countries;

(15) other powers and duties stipulated in laws and regulations.

Article 11 The composition and procedure rules of the management committee of the state-owned assets shall be stipulated by the municipal government.

Article 12 The management committee of the state-owned assets shall set up the working body under it to be in charge of the daily work, and the working body shall exercise the following powers and powers:

(1) to implement the laws and regulations relevant to the management of the state-owned assets, and the regulatory frameworks, resolutions and decisions made by the management committee of the state-owned assets;

(2) to investigate and study the principal matters existing in the management of state-owned assets, and to put forward the improving schemes and measures;

(3) to organize the general checkup on state-owned assets, definition of the property right，property assessment and registration of the property right, and to mediate and deal with the dispute about property right;

(4) to lay down the safeguard measures for the state-owned assets involved in the consolidation, split, contract management, lease, transformation in line with stock system and transfer of property right of the enterprise, and to supervise and urge their implementation;

(5) to lay down the target system to the state-owned assets’ inflation-proof and appreciation, and to assess the situation of state-owned assets managed by the operating institution of state-owned assets;

(6) to be in charge of the affirmation and annual examination to the qualification of the assets assessment organizations for assessing the state-owned assets, and to put the assessment reports of state-owned assets on record or to affirm them;

(7) to supervise the title transaction of the state-owned assets;

(8) to carry out the classified statistic or the comprehensive statistic to the state-owned assets, and to coordinate the supervision and management to the nonoperational state-owned assets;

(9) to train the managerial personnel of the state-owned assets;

(10) other powers and duties delegated by the management committee of the state-owned assets.

Article 13 The district people’s government shall set up the managerial organization of state-owned assets, whose powers and duties shall be determined by the municipal government according to the principles of these regulations.

Chapter Ⅲ Definition，Assessment and Registration of State-owned Assets

Article 14 The definition of the property right of state-owned assets refers to the behavior of confirming the ownership of the state-owned assets and other property rights relevant to the ownership according to law.

Article 15 The definition of the property right of state-owned assets shall follow the principle of “investor owns the property right”.

Article 16 The following properties shall be defined as state-owned assets according to law:

(1) the currency, practicality and intangible assets used by the municipal or district people’s government for investment;

(2) the earnings of the state-owned assets;

(3) the natural appreciation and fruits of the state-owned assets;

(4) other properties that shall be defined as state-owned assets according to laws, regulations and relevant provisions.

Article 17 The net assets, which are accumulated internally in the solely state-owned enterprises or other state-owned economic organizations established completely with loan capital guaranteed in the name of operating institution of state-owned assets or other state-owned units, or the state or the operating institution of state-owned assets actually bears the investment risk, shall be defined as the state-owned assets.

Article 18 The assets in the solely state-owned enterprises or other state-owned economic organizations shall be defined as state-owned assets unless they have been defined as non-state-owned assets according to law.

Article 19 The assessment of state-owned assets shall be conducted according to the standards, procedures and ways stipulated by the state，and whenever the principles of authenticity, impartiality, scientificalness and feasibility shall be observed.

The assessment of the state-owned assets shall be authorized to the intermediary organizations with the assessment qualification of state-owned assets to carry out.

Article 20 If one of the following conditions occurs in the units occupying the state-owned assets, the assets valuation shall be conducted:

(1) to auction or transfer the assets;

(2) to consolidate, split or sell the enterprises or to remold them in line with the stock system;

(3) to establish the enterprises of joint venture or the cooperative ventures with the chattels, real estate or intangible assets jointly with others;

(4) to liquidate the enterprise for termination;

(5) other conditions needing the assets valuation as stipulated by laws and regulations.

Article 21 The units occupying the state-owned assets shall conduct the registration of property right of state-owned assets in the working body of the management committee of the state-owned assets.

The registration items of the property right of state-owned assets include;

(1) the name, domicile and organization form of the units occupying state-owned assets;

(2) the name and position of the legal representative and the representative of the property right of state-owned assts;

(3) the actual capital and capital composition of the units occupying state-owned assets;

(4) the name of the investor of state-owned assets;

(5) the total amount of the state-owned assets;

(6) other necessary items.

Article 22 If the established enterprise occupies the state-owned assets, the incorporation registration of the property right of state-owned assets shall be conducted.

If the name, domicile, legal representative or relationship of administrative subordination of the unit occupying the state-owned assets changes, or the total amount of the property right of state-owned assets increases or decreases more than 20 percents, the occupying unit shall conduct the alteration registration of the property right of state-owned assets.

If the unit occupying the state-owned assets has the conditions of bankruptcy, dismissal, cancellation or other termination conditions, it shall conduct the cancellation registration of the property right of state-owned assets.

Article 23 The registration of the property right of state-owned assets shall exercise the system of annual examination.

The working body of the management committee of state-owned assets shall examine the unit occupying the state-owned assets annually about the registration of the property right, the examining and approving formalities of the alteration of property right, the completion of the target of inflation-proof and appreciation as well as the implementation of the defending measures of lawful rights and interests involving state-owned assets.

Article 24 The working body of the management committee of state-owned assets shall establish the system of files registration of the property right of state-owned assets, and preserve the credences and materials of the registration of the property right of state-owned assets.

Article 25 The working body of the management committee of state-owned assets shall set up the statistical system of state-owned assets, and conduct the statistics to the stock and changes of state-owned assets.

Chapter Ⅳ The Operation of State-owned Assets

Article 26 The operation of state-owned assets refers to the activity of investment operation and management of the property right of the state-owned assets carried out by the operating institution of state-owned assets (hereinafter referred to as the operating institution) established according to law.

Article 27 The operating institution is the enterprise legal person representing the municipal and district people’s governments to exercise the investor’s rights of the state-owned assets, and is the institution authorized by the state to invest.

Article 28 The operating institution shall exist in the forms of solely holding company or mixed holding company.

The solely holding company refers to the company that doesn’t engage in the productive and operating activities directly but participates in the operation through wholly or partly owning the stock equity of other companies or enterprises.

The mixed holding company refers to the company that not only engages in the productive and operating activities directly but also participates in the operation through wholly or partly owning the stock equity of other companies or enterprises.

Article 29 The establishment of the operating institutions shall accord with the following conditions:

(1) the registration capital is no less than RMB 500 million yuan;

(2) there are complete articles of association and management system of the company;

(3) there are the company’s name and the organizational structure according with the requirements;

(4) there are the fixed domicile and necessary professional personnel;

(5) other conditions stipulated in laws and regulations.

The articles of association of the operating institution shall be examined and approved by the management committee of state-owned assets.

Article 30 The formulation of the articles of association and management system of the operating institution shall observe the following principles:

(1) to safeguard the safety and appreciation of the state-owned assets;

(2) to be beneficial to the optimization of the industrial structure and the raise of operating efficiency of the state-owned assets;

(3) to compete fairly and to avoid monopoly;

(4) to stick to the unification of duty, power and interests, and to give consideration to the interests of the state, enterprise legal person and the employees.

Article 31 The articles of association of the operating institution shall expressly record the following matters:

(1) the name and domicile;

(2) the aim of establishment;

(3) the amount of registration capital;

(4) the form of the organization;

(5) the business scope;

(6) the rights and obligations;

(7) the responsibility for the management committee of state-owned assets;

(8) the establishment, function and power as well as rules of the procedure of the institution;

(9) the name and position of the legal representative;

(10) the procedures of investment and operation of state-owned assets and other important decisions and policies;

(11) the abstract of the internal management system;

(12) other matters that shall be recorded.

Article 32 The establishment, alteration and termination of the operating institution shall be examined and approved by the management committee of state-owned assets and shall go through the formalities of registration of enterprise legal person according to law.

Article 33 The rights of the operating-institution are the followings:

(1) to enjoy the right of earnings of state-owned assets according to the provisions of these regulations;

(2) to exercise as investor the powers of making important decisions in the investment operation and management of property right of state-owned assets;

(3) to delegate the representative of the property right of state-owned assets to the enterprise according to the relationship of property right;

(4) to delegate member to the board of supervisors of the solely state-owned enterprise that belongs to it, except that the eighth subparagraph of Article 10 of these regulations stipulates otherwise;

(5) to delegate the financial director to the solely state-owned enterprise and the state-owned holding enterprise that belongs to it;

(6) other rights stipulated in laws and regulations.

Article 34 The obligations of the operating institution are the followings:

(1) to take reasonable and effective measures and steps to safeguard the inflation-proof of the amount of state-owned assets;

(2) to implement the measures of appreciation of state-owned assets according to the target of appreciation of the state-owned assets laid down by the working body of the management committee of state-owned assets;

(3) to bear responsibilities for the invested enterprise legal person within the extent of the invested capital;

(4) other obligations stipulated in laws and regulations.

Article 35 It is prohibited that the operating institution provides security without consideration for the enterprise, which is not the holding enterprise of the operating institution.

Article 36 Besides enjoying the rights, performing the duties and taking the responsibilities according to the provisions of these regulations, the mixed holding company shall abide by the provisions of laws and regulations concerning company within its business scope of production and operation.

Article 37 The operating institution shall set up the managerial responsibility system of the state-owned assets and the representative system of the property right of state-owned assets according to the principles of demarcating the power and responsibility, scientific management and combing the encourage and restraints.

Article 38 The operating institution shall conclude the Managerial Responsibility Statement of State-Owned Assets with the solely state-owned enterprise or state-owned holding enterprise according to the requirements of the managerial responsibility system of state-owned assets.

The content and form of the Managerial Responsibility Statement of State-Owned Assets shall be formulated by the working body of the management committee of state-owned assets.

Article 39 The representatives of the property right of state-owned assets shall be responsible for the safety and appreciation of the state-owned assets of the enterprise where they hold offices according to the target of inflation-proof and appreciation of the state-owned assets enacted by the operating institution.

Article 40 The representatives of the property right of state-owned assets shall report the business achievements, financial situation and changing conditions of the property right of state-owned assets of the enterprises where they hold offices to the operating institution regularly. The operating institution has the right to inquire the representatives of the property right of state-owned assets of the enterprises.

If the operating and financial situation of the enterprise has important changes, the representatives of the property right of sate-owned assets of the enterprise shall report the changed items, reasons, amounts, ratios, relevant persons liable and other relevant conditions to the operating institution in writing.

Article 41 The operating institution shall set up the account book to record in time the total amount, distribution and structure of the state-owned assets that it operates.

Article 42 The operating institution shall draw up the long-term development plan, and organize its implementation after being examined and approved by the municipal management committee of state-owned assets.

The operating institution shall draw up the operation plan and utilization plan of earnings of state-owned assets of next year ahead of the beginning of every accounting year, and organize its implementation after being examined and approved by the management committee of state-owned assets.

Article 43 The operating institution shall submit the annual operation report of the state-owned assets to the management committee of state-owned assets within three months after the expiry of every accounting year, and the report shall record the existing amount, increase, decrease or alteration of the state-owned assets in detail.

The report referred in the preceding paragraph shall be audited by the municipal auditing organization.

Chapter Ⅴ The Operation of State-Owned Assets

Article 44 The enterprise legal person that enjoys the legal person's property rights of the state-owned assets shall enjoy the civil rights and bear the civil obligations according to law.

Article 45 For the state-owned assets legally occupied by the enterprise legal person, the legal person's property right shall be acquired when the properties are delivered, except otherwise stipulated in laws and regulations or otherwise agreed in contract.

Article 46 For the legally occupied state-owned assets, the enterprise legal person shall attain the Certificate of Authorized Occupation and Utilization to the State-Owned Assets from the administrative organization of state-owned assets according to relevant provisions.

Article 47 The enterprise legal person shall take the business measures that are stipulated by laws and regulations or accord with the business practices to operate the state-owned assets.

Article 48 For the after-tax profits acquired in the operation of the state-owned assets, the enterprise legal person shall distribute them to the operating institution according to the articles of association or relevant provisions of the municipal government after having drawn the public accumulation fund and public welfare fund according to law.

Article 49 The solely state-owned enterprise shall acquire the consent of the operating institution to undertake one of the following activities:

(1) the amount of invested capital exceeds the limitation stipulated by the operating institution when it invests in other enterprise to hold shares, run the joint venture or cooperative business operation with the foreign enterprise, operate with other enterprises or institutions jointly or invest to establish enterprise;

(2) to be reorganized as the limited liability company or stock limited company;

(3) to provide guarantee for others with its total properties or properties exceeding the limitation stipulated by the operating institution;

(4) to acquire the property right of other enterprises, which causes important influences on its own operation;

(5) to provide guarantee for the enterprises of Taiwan, Hongkong, Macao or foreign countries;

(6) to donate the properties exceeding 50,000 yuan.

The activities violating the provisions of the preceding paragraph shall be invalid.

Article 50 The enterprise legal person has the right to refuse any unit or individual to mobilize, apportion or gratuitously allocate the state-owned assets that it operates.

Article 51 The enterprise legal person shall not violate the provisions of laws, regulations and articles of association, and shall not damage the investor’s interests and the social public interests, while exercising the legal person’s property right to its occupied state-owned assets.

Article 52 The solely state-owned enterprise and state-owned holding enterprise shall perform the obligations and bear the responsibilities according to the Managerial Responsibility Statement of State-owned Assets.

If the solely state-owned enterprise and state-owned holding enterprise fail to fulfill the target of appreciation and the index of profit increase of state-owned assets stipulated by the Managerial Responsibility Statement of State-owned Assets in continuous two years, the post of legal representatives and the qualification of representative of the property right shall be relieved of according to relevant provisions and legal procedures.

Article 53 The operating institution shall audit when the legal representative of the solely state-owned enterprise or solely holding enterprise leaves his post.

Article 54 The chief financial inspector delegated by the operating institution shall supervise the authenticity and legality of the financial situation of the enterprise where he holds post.

The financial director exercises the following functions and powers:

(1) to examine the financial report of the enterprise;

(2) to supervise and inspect the financial revenue and expenditure of the enterprise;

(3) to jointly sign and approve the matters of capital expenditure and guarantee within the stipulated scope with the board chairman or manager;

(4) other functions and powers stipulated by the management committee of state-owned assets.

Chapter Ⅵ The Earnings of State-Owned Assets

Article 55 The reporting system of the budgetary earnings of state-owned assets shall be established.

The budget draft and final accounts draft of the state-owned assets shall be drawn up by the administrative organization of state-owned assets, and shall be submitted to the People’s Congress or its standing committee at the same level for examination and approval at the first season of every year after discussed by the municipal or district government.

The earning budget of state-owned assets shall be organized to implement by the administrative organization of state-owned assets.

Article 56 The following earnings of state-owned assets shall be acquired by the operating institution:

(1) the profits turned over by the solely state-owned enterprise;

(2) the dividend and bonus distributed to the state-owned stock in the limited liability company and the joint-stock limited company and the transferring earnings of the subscription warrant;

(3) the transferring earnings of state-owned assets acquired by the operating institution;

(4) the transferring earnings of state-owned stock rights acquired by the operating institution

(5) the after-tax profits of the operating income of the operating institution;

(6) other earnings acquired according to law.

Article 57 The enterprise operating the state-owned assets shall pay the earnings of state-owned assets to the operating institution on schedule and fully.

Article 58 The paying methods of the profits of the solely state-owned enterprise shall be laid down by the municipal government.

The distribution of profits of the limited liability company and the joint-stock limited company shall follow relevant provisions of laws and regulations on company.

Article 59 The earnings of the state-owned assets shall be used:

(1) to increase the capital；

(2) to set up a new enterprise;

(3) to invest for holding stock;

(4) other forms of expanded reproduction of the state-owned assets;

(5) other uses stipulated by laws and regulations.

Article 60 For the earnings acquired according to provisions of these regulations, the operating institution has a determinative right to use within the stipulated scope.

Article 61 The operating institution shall report the implementation of the earnings budget of state-owned assets that it operates to the administrative organization of state-owned assets at the middle and end of every accounting year.

The administrative organization of state-owned assets shall report the implementation of the earning budget of state-owned assets last year to the municipal or district government; The municipal and district government shall report the implementation of the earning budget of state-owned assets last year to the people’s congress or its standing committee at the same level at the first season of every year.

Chapter Ⅶ The Transference of the Property Right of State-owned Assets

Article 62 The transference of the property right of state-owned assets refers to the behavior that the enterprise legal person or other economic organization legally occupying and using the state-owned assets transfer the property right of state-owned assets to others through transaction, exchange or other legal means.

Article 63 The transference of the property right of state-owned assets shall observe the principles of equality and making compensation for equal value, and shall promote the reasonable circulation and optimized allocation of state-owned assets.

Article 64 If the enterprise legal person transfers the total or main part of the property right of state-owned assets, this transference shall accord with the industrial policy of Special Zone and obtain the consent of the operating institution.

Article 65 The following behaviors shall be reported to the administrative organization of state-owned assets for approval according to relevant provisions:

(1) the transference of the property right of state-owned assets to the individual, private enterprise or collectively-owned enterprise;

(2) the transference of the property right of state-owned assets to the Sino-foreign equity joint venture, Sino-foreign cooperative joint venture or foreign-capital enterprise;

(3) the transference of the property right of state-owned assets to the investors form Taiwan, Hongkong, Macao or foreign countries;

(4) other behaviors stipulated by laws and regulations.

Article 66 If the intermediary organization of transaction of the property right undertakes the transaction of the property right of state-owned assets, it shall get approval of the working body of the management committee of state-owned assets.

Article 67 The transference of the property right of state-owned assets shall be conducted through the intermediary organization of transaction of the property right which has got approval of the working body of the management committee of state-owned assets, except the transference of the state-owned stock equity of the listed company.

Chapter Ⅷ The Settlement of Dispute of the property right of State-Owned Assets

Article 68 The dispute of the property right of State-owned assets arising from the operating institutions shall be mediated and settled by the management committee of State-owned assets.

Article 69 The disputes of the property right of the State-owned assets arising among the enterprises may be mediated and settled by the working body of the management committee of state-owned assets, and relevant parties may also apply according to the arbitral agreement for arbitration to the arbitral agency established according to law, or file a lawsuit to the people’s court.

Article 70 The working body of the management committee of state-owned assets shall mediate and settle the disputes of the property right of state-owned assets according to the stipulated principles and procedures.

Article 71 The enterprise legal person may apply for settlement to the working body of the management committee of state-owned assets or file a lawsuit to the people’s court according to law if the the operating institution infringe its legal rights and interests,

Article 72 Suffering from the torts of duty of the state organizations and their working staff, the operating institution and the enterprise legal person operating the state-owned assets have rights to apply for compensation to losses from the state-organizations and shall report to relevant organizations of the State.

Chapter Ⅸ Legal Responsibilities

Article 73 If the occupying unit of the state-owned assets violates the provisions of Article 20 of these regulations, failing to carry out the assets assessment or playing tricks in the assets assessment, the legal representatives and the directly liable persons of the units occupying state-owned assets shall be investigated for the administrative responsibilities by the administrative organization of state-owned assets. If losses are caused to the state-owned assets, the legal representatives and the directly liable persons of the units occupying state-owned assets shall take the liability of compensation. If their behaviors constitute crimes, they shall be prosecuted for criminal responsibilities according to law.

Article 74 If the occupying unit of the state-owned assets violates the provisions of Article 21 and Article 22 of these regulations, failing to conduct the registration of the property right of the state-owned assets or playing tricks in the registration of the property right, the legal representatives and the directly liable persons of the units occupying state-owned assets shall be investigated for administrative responsibilities by the administrative organization of state-owned assets. If their behaviors constitute crimes, they shall be prosecuted for criminal responsibilities according to law.

Article 75 Violating the provisions of Article 35 of these regulations, the guarantee provided by the operating institution is invalid. If losses are caused to the state-owned assets, the legal representatives and the persons directly liable of the operating institution shall take the liability of compensation and be given the administrative punishments by the administrative organization of state-owned assets. If their behaviors constitute crimes, they shall be prosecuted for criminal responsibilities according to law.

Article 76 If the representatives of the property right of state-owned assets violate the provisions of Article 39 of these regulations, causing losses to the state-owned assets, they shall take the liabilities of compensation, and the operating institution shall revoke their qualification of the representatives of the property right of state-owned assets.

Article 77 If the solely state-owned enterprises violate the provisions of Article 49 of these regulations, their behaviors shall be invalid. If losses are caused to the state-owned assets, the legal representatives of the solely state-owned enterprise and the persons directly liable shall take the liabilities of compensation, and the management institution of state-owned assets shall give them administrative punishment. If their behaviors constitute crimes, they shall be prosecuted from criminal responsibilities according to law.

Article 78 If relevant parties violate the provisions of Article 64, Article 65 and Article 67 of these regulations, failing to transfer the property right of state-owned assets according to the stipulated procedures, the transferences shall be invalid. If losses are caused to the state-owned assets, the legal representatives of the enterprises and the persons directly liable shall take the liabilities of compensation, and the management institution of state-owned assets shall give them administrative punishment. If their behaviors constitute crimes, they shall be prosecuted for criminal responsibilities according to law.

Article 79 If the working staff of the administrative organization of state-owned assets violates provisions of these regulations, neglecting their duties, abusing their powers and playing irregularities for favoritism, the organization that they belong to or the supervisory department shall give the administrative punishments to the persons liable according to the functions and duties. If their behaviors constitute crimes, they shall be prosecuted for criminal responsibilities according to law.

Article 80 If the working staff of the operating institution, the representative of the property right of state-owned assets, the financial director delegated by the operating institution, the legal representative of the enterprise legal person operating the state-owned assets and other relevant personnel violate the provisions of these regulations, neglecting their duties, abusing their powers and causing losses to the state-owned assets, they shall take the liabilities of compensation, and the administrative organization or operation institution of the state-owned assets shall investigate them for administrative responsibilities according to the functions and powers. If their behaviors constitute crimes, they shall be prosecuted for criminal liabilities according to law.

Article 81 The legal representatives and the directly liable persons of the solely state-owned enterprise or the state-owned holding enterprise, having made losses to the state-owned assets and been given administrative punishments of dismissal or above, or the criminal penalties, shall not hold the post of legal representative or other posts liable of the solely state-owned enterprise or the state-owned holding enterprise.

Article 82 If the enterprise operating the state-owned assets fabricates and reports the false final accounts, disguises, holds back and refuses to turn over the earnings of state-owned assets, the operating institution shall pursue it and collect the overdue fine added. The operating institution or administrative organization shall give the administrative punishments to the legal representative and the persons directly liable according to the functions and powers. If their behaviors constitute crimes, they shall be prosecuted for criminal responsibilities according to law.

Article 83 In the general checkup on enterprise assets, assets assessment, registration of the property right, transaction of the property right, financial audit or other managerial links of state-owned assets, if the intermediary institution plays tricks, plays irregularities for favoritism and causes losses to the state-owned assets, the personnel directly liable and the intermediary institution that they belong to shall take the liability of joint compensation. If the circumstances are serious, relevant administrative departments shall revoke the certificate to practice of the intermediary institution and the personnel directly liable. If their behaviors constitute crimes, they shall be prosecuted for criminal liabilities according to law.

Article 84 If the parties are not satisfied with the administrative penalties made by the management institution of state-owned assets, they may apply for appeal to the organization for administrative appeal of the People’s Government of Shenzhen Municipality within 15 days from receipt of the penalty decisions, or may directly file lawsuits to the people’s court within 15 days from receipt of the penalty decisions.

If the parties are not satisfied with the appeal decisions made by the organization for administrative appeal of the People’s Government of Shenzhen Municipality, they may file lawsuits to the people’s court within 15 days from receipt of the review decisions.

If the parties fail to apply for appeal or file lawsuits in the stipulated time limit and refuse to fulfill the penalty decisions, the management institution of the state-owned assets making the penalty decisions shall apply for coercive enforcement to the people’s courts.

Chapter Ⅹ The Supplementary Provisions

Article 85 The management of the operational state-owned assets invested by the people’s government of the town or acquired by other means according to law shall be stipulated separately by the municipal government.

Article 86 The management and operation of the state-owned assets in Taiwan, Hongkong, Macao or foreign countries shall be abide by the principles of these regulations. The concrete management measures shall be stipulated separately by the municipal government.

Article 87 The municipal government may enact the implementing rules according to these regulations.

Article 88 These regulations shall go into effect as of September 1,1995.