Official: China centrally administered enterprises saw recovery in March

He urged enterprises to ensure enough cash liquidity amid the financial crisis.

Talking about acquisitions abroad, he said, "money is not a problem for these enterprises going overseas for acquisition, but management is the top one".

Acquisition should be done within their capital, management and technology capability, otherwise the results would be catastrophic, he said.

He noted it was more important for major enterprises to focus on tackling the economic slowdown, as they played an important role in the national economy and also shouldered great responsibility.

The government released an announcement in February to launch a special examination on major investment projects and mergers of centrally-administered SOEs to prevent fiscal risks.

The enterprises should improve their management and structure, and upgrade information system, Li said.

The 2008 profits of Chinese SOEs under direct central government control recorded the first annual decline since 2002, falling more than 30 percent year on year to 665.29 billion yuan (97.2 billion U.S. dollars).

Editor:Zhang Pengfei