Changes of head personnel at some State-owned enterprises recently grabbed the media's attention but the process is in need of reform, said an article in the 21st Century Business Herald (excerpts below).

There is always fierce competition in private enterprises for senior executive positions. So long as candidates are judged by merit and talent, this is a good thing.

Yet, the government's appointment mechanism appears too simple. In theory, all shareholders have a say in selecting the most capable managers to operate their capital.

The problems facing China's SOEs have been serious and apparent for a long time. Measures must be introduced and enforced to make sure that the best talent available runs the SOEs.