China's top state assets watchdog said here Monday that state companies should be well aware of investment and management risks and try all out to control them.

At a meeting of leaders of big state-owned companies, Li Rongrong, minister in charge of the State-owned Assets Supervisionand Administration Commission (SASAC) of the State Council, said the enterprises should be particularly careful when investing and buying stakes.

The companies must standardize effective mechanisms in financial reports and inside audits, which might help them to avoid risks and control risks as much as possible, he said.

Li made the remarks after the illegal derivatives trading of China Aviation Oil (Singapore) Corp. was released, which led to massive losses valued at roughly 550 million US dollars.

Li said many big companies often underestimate risks in management and investment and look amateurish when they are obliged to face such crises.

As more and more Chinese enterprises go overseas to find profits, he warned, they need to invest much more energy and wisdom in dealing with risks and even crises.

"We could never rule out any risks in business, but we should try all out to minimize possible risks," he said. "We must not repeat errors and get similar lessons after lessons."

Li said one major task of the big state companies in the comingyear will be to establish and improve risk-control and crisis-management mechanisms, especially in the trading of stakes, bonds,futures and foreign currencies, where risks are high.