Amidst ongoing structural shifts in the global economy, state-owned enterprises (SOEs) are navigating a pivotal period marked by the commencement of the "15th Five-Year Plan" and the intensified execution of a new wave of reform initiatives. At the China International Fair for Trade in Services (CIFTIS) on September 11, KPMG presented two new research publications designed to offer strategic insights for SOEs seeking high-quality growth during this critical phase.

The first report, titled Renewing Value, Empowering Development: Selected Practices in Capital Operations, Strategy Implementation, and SOE Reform (referred to as Empowering Development), is part of KPMG's enterprise high-quality development series. It centers on the theme of "value renewal and empowerment," introducing a novel framework that integrates a "dual closed-loop with dual-wheel drive" system. This model aims to harmonize state-owned capital operations with the effective execution of corporate strategies, creating a cohesive approach to reform.

The second report, Navigating Economic Cycles: Unlocking the "Second Growth Curve" (referred to as Second Curve), is part of KPMG's series on deepening SOE reforms. It focuses on the strategic logic behind driving industrial upgrades and technological innovation to achieve new growth trajectories. The report outlines a four-stage analytical framework, "Seek Truth, Optimize Path, Strategize, and Build Momentum," designed to guide SOEs in selecting and successfully implementing their second growth curve initiatives.

Qiao Mo, KPMG China's lead partner for the State-Owned Enterprise Reform and Development Center and the State Assets Research Institute, emphasized the need to balance the optimization of existing operations with breakthroughs in new ventures. He noted that current business lines serve as the "foundational base" for exploring new opportunities, and their stable, ongoing resource needs cannot be overlooked. He also stressed the importance of timing in the transition between old and new growth drivers to ensure a smooth shift, and highlighted the potential for "reverse empowerment," where second-curve businesses can positively influence legacy operations through technological spillover effects, requiring early planning of these pathways.