Research On The Motivation And Path Of Mixed Ownership Reformin B Iron And Steel Group

State-owned enterprises hold the lifeblood of national economy and play a leading role in the economic system of China.The reform of state-owned enterprises represents one of the most important issues about corporate governance at present,and is often one of the hot topics of the Two Sessions(short for the National People’s Congress and the Chinese Political Consultative Conference).The iron and steel industry,being fundamental to the manufacturing industry of China,plays an important role in supporting the national economy.B Iron and Steel Group,as one of extremely large state-owned iron and steel enterprises in China,exerts an important impact on the regional economy.However,B Iron and Steel Group has been suffering from losses for years.In 2015,B Iron and Steel Group started to be restructured in an effort to pay off its debts of 260 billion yuan,and fix its broken capital chain.In 2019,B Iron and Steel Group introduced the private capital Delong Group as one of its strategic investors to carry out the mixed ownership reform.The same year,the group achieved good results,with the total profit of 4 billion yuan.Based on the modern property rights theory and decentralized control theory,combined with relevant research in the field of mixed ownership reform,this thesis uses the case study method to study the mixed ownership reform of the research object B Iron and Steel Group.The thesis makes a detailed analysis of the internal and external motivations and paths for B Iron and Steel Group during its mixed ownership reform,and analyzes the effectiveness of the reform from three aspects of corporate governance,financial control,and research and development capacity.The study finds out that after the implementation of mixed ownership reform,B Iron and Steel Group has optimized its ownership structure,improved its management efficiency,turned its financial situation from loss to profit,and enhanced its market competitiveness.The thesis hereinafter draws the following three conclusions.First,the industrial characteristics and institutional contradictions of B Iron and Steel Group indicate that it is necessary to implement mixed reform.The financial status of B Iron and Steel Group provides the direct motivation for the mixed reform,making the system transformation in urgent need,with the national policy guiding its mixed reform.Second,the mixed reform path chosen by B Iron and Steel Group is reasonable and in line with its strategic goals.The introduction of strategic investors and the "dual platform structure" shareholding mode helps optimize its shareholding structure and improve its corporate governance capacity.Third,the mixed reform is more suitable for the development of B Iron and Steel Group.The mixed reform has solved the problem of institutional transformation of B Iron and Steel Group,stimulated the company’s vitality,and improved management efficiency,bringing about large profits as a result.This research gains four experiences.First,we should choose the right path for mixed-use reform.The path of mixed reform is not unique,and an appropriate path is the key to the success of mixed reform.Second,we need to give priority to strategic investors when it comes to introducing new shareholders.When the strategic investors with their business related to the group or highly complementary to the group are introduced,the effect of mixed-ownership reform is more likely to be better than expectation.Third,we should innovate the shareholding pattern.The "dual platform structure" shareholding mode of B Iron and Steel Group performs better in protecting the rights and interests of creditors and investors.Fourth,we need to improve corporate governance in depth.The ultimate goal of mixed-mix reform is to reform,with the ownership mixing being a tool.Only with in-depth reform can we achieve outstanding results.This thesis aims to enrich the case materials of the mixed ownership reform of state-owned iron and steel enterprises,and provide reference for the mixed ownership reform of state-owned iron and steel enterprises in China in the future.