Experts believe that the mixed ownership reform will play a more important role in this round of state-owned enterprises (SOEs) reform.
Based on the SOEs reform in previous years, it can be found that it firstly focused on the top design and pilots and shifted to the mixed ownership reform as the breakthrough. In the opinions of Jiang Chao, chief economist from Haitong Securities, it marks that this round of SOEs reform has entered into the stage of 2.0. It also means that the mixed ownership reform will play a more important role in this round of SOEs reform.
More mixed successful cases of ownership reform in local SOEs have been made. Zhejiang, a province with most active private economy, will see the first overall listing after the mixed ownership reform in SOEs. It is reported that the overall listing plan for Zhejiang Materials Industry Group Co., Ltd. has been approved by the CSRC. 54.42 percent equities of the company will be held by the state and the remaining will be held by strategic investors, the management and other key business staff after the overall listing.
In Beijing, Shanghai, Guangdong, Zhejiang and other developed region, the SOEs reform is to improve the asset securitization of local SOEs, indicated Pan Helin, an economist at the Chinese Academy of Fiscal Sciences, in an interview on Aug. 13. It will drive asset securitization through capital operations and vitalize the resources of listed companies through the management of market value to optimize and consolidate internal resources and maximize the value of state-owned assets.
While local government promotes the mixed ownership reform of SOEs, the mixed ownership reform of Yunnanbaiyao Group has been highly concerned. The company listed the mixed ownership reform as an unprecedented event.
It is reported that Yunnanbaiyao Group introduced Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. on June 6. The State-owned Assets Supervision and Administration Commission of Yunnan Provincial People’s Government, New Huadu Industrial Group and Yuyue Medical hold 45 percent, 45 percent and 10 percent equities of Yunnanbaiyao Group.
“The mixed ownership reform is to introduce private capitals to further improve the operation efficiency of SOEs.” Pan indicated that the state generally retains over 51 percent controlling equities. But private capitals and state-owned capitals hold equal shareholding in Yunnanbaiyao Group. As one of the few successful cases, it will facilitate the establishment of the modern enterprise management system based on equities.
Pan believed that Yunnanbaiyao Group will gradually transform into a service company after the mixed ownership reform. With its strength in services, New Huadu Industrial Group will be responsible for the establishment of the market-based system. The introduction of New Huadu Industrial Group follows the spirit of the mixed ownership reform of SOEs. The introduction of Yuyue Medical is to give play to the synergy and improve the corporate governance structure. With its experiences, Yuyue Medical will help Yunnanbaiyao Group establish a market-based corporate governance and decision-making mechanism.
Pan indicated that with the deepening of the mixed ownership reform, it will focus on introducing strategic investors and promoting employee shareholding pilots in the mixed ownership reform of local SOEs.
Insiders believe that in the mixed ownership reform of local SOEs will see three trends. They will not seek the controlling rights, focus on the strategic synergy with new partners and increase the shareholding proportion of core employees.
Translated by Star Zhang
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