BEIJING - The State Council, China's cabinet, will formulate an accountability system to punish illegal business operations by state-owned enterprise (SOE) managers, a statement said on Tuesday.

Managers could be fined or sued for mistakes in operations such as project contracting, investment and mergers as well as risk control, according to the statement.

The accountability system aims to prevent state asset loss while stimulating productivity, it said.

Detailed rules and regulations for the SOE accountability system will be published by the end of 2017, said the cabinet, adding that the system will expand to all government-funded institutions by the end of 2020.