BEIJING - China's major State-owned enterprises will complete corporate governance reform by the end of this year, in an effort to overhaul inefficient companies.

The reform targets SOEs supervised by the central government excluding financial and cultural firms, according to an action plan released by the State Council late last month.

A contemporary corporate system aims to separate government administration from business operations by restructuring them into limited companies. As a result, SOEs can function as efficiently as other businesses. Corporate governance reform is one of the key goals of SOE reform.