Each year, the State Council, China's Cabinet, is to report the condition and management of State assets to the Standing Committee of the National People's Congress, the top legislature.

The State Council will submit two types of annual reports. One will be a general report on the basic conditions of all sorts of State assets. The other will be a report on specific State assets, such as State-owned enterprises, State-owned financial institutions, State-run non-commercial institutions and State-owned natural resources.

The first review is scheduled to be at the meeting of the 13th NPC Standing Committee in October this year. By then the State Council is to submit a written comprehensive management report of State-owned assets and a verbal report on State-owned financial enterprises.

The move to establish such a mechanism is a vital step to enhance the supervision over State assets and push forward reforms.

The State Council is to also establish a complete and accurate database about State assets, which can be shared by relevant ministries and departments, and lawmakers are expected to check how major policies and reform plans concerning State assets are being implemented, and how State-owned enterprises and institutions are serving the national strategies.

The mechanism will be launched step by step, starting from the easiest aspects to the most difficult ones. State assets will be divided into different categories, some of which will be reported first and more will be added, it said.