China's national assets watchdog may establish a new framework for the ownership of State-owned companies.

The China Securities Journal reported on Thursday that the State-owned Assets Supervision and Administration Commission will consider a plan in which it will take direct control of shares in State-owned companies.

Under the current system the SASAC acts as a regulator, and indirectly holds shares in State-owned enterprises through platform companies that deal with State-owned assets.

Under the proposed reforms the SASAC will have more direct ownership of the State-owned enterprises.

Similar systems of ownership have been successful when implemented by local asset supervision and administration commissions in Shanghai and Shenzhen.

The China Securities Journal wrote that the SASAC may not control all shares in the State-owned enterprises but bring in other State-owned companies and institutions to hold shares jointly. The plan is still under discussion and if adopted is likely to be implemented as early as next year.