Font Size: a A A

Legal Explore On Local State-owned Capital Operation

Posted on:2014-04-16Degree:DoctorType:Dissertation
Country:ChinaCandidate:C B DingFull Text:PDF
GTID:1266330401977923Subject:Economic Law
Abstract/Summary:PDF Full Text Request
The State-owned capital, the foundation of economic base of socialism whichplays a central role under the current political construction of China, has tremendousinfluence over economic development as well as political life. The state-owned capitaloperation has become the central task of developing state-owned economy ever sincethe establishment of the People’s Republic of China. The state-owned enterprise hasalways been subject to the system and there are many insurmountable drawbacks inthe period of planning economy. Although after a number of central and localadministrative decentralization, the state-owned enterprises have not been able to getrid of being the governmental appendages. As the process of reform and opening up,the reform of property rights, as well as establishing a modern enterprise system andother initiatives has effectively promote the state-owned assets. In recent years, themanagement of state-owned assets gradually transits from the management of single,discrete enterprise, as well as the intervention of the enterprise business to theoperations of state-owned enterprises. The carrier of state-owned assets has changedfrom specific enterprise to capital operation. In response to this trend, academia hasgiven great attention to the operations of state-owned capital while the managedepartment has continuously strengthen the regulation of state-owned capitaloperation.As a part of the state-owned system, the management of local state-owned assetsand operations of state-owned capital plays an irreplaceable role for the overalldevelopment of the State-owned capital and regulation of local government behavior.It’s a worthy subject to research on how to reasonable and legitimate operate localstate-owned capital. Currently, the local government is facing unbalanced situation oflegal division of the responsibilities and the authority of finance between the central and the local government, in subject to the existing tax federalism system. Localgovernment is particularly concerned about the way to expand the financial revenue,as well as obtain political achievements. Since the local government cannot issue thegovernment bonds, and land financial has been suffering from financialmacro-economic control and thus becomes unsustainable, it becomes the focus oflocal government to create financial revenue and obtain political achievementsthrough the grasp of state-owned assets, and this is evidenced by the emergence of alarge number of local financing platforms. There are a lot of problems for the localstate-owned capital operation and should be standardized, due to the improper settingof operational goal.From the relationship between central and local government, how to fullymobilize local enthusiasm and avoid excessive competition among local governments,as well as making the balance between centralization and decentralization, shows theimportance of research over the local state-owned capital operation system. Thepresent local state-owned capital operation system is established over the premise ofthe “grading representatives”. The operations of state-owned capital system designand adjustment by the local government can only in accordance with the permissiongranted by the central government. In order to accommodate the need for theestablishment of a modern enterprise system as the deepened reformation of propertyrights of state-owned enterprises, the conventional local state-owned assetsmanagement and operating system is objectively needed to reform. The report of18thCentral Committee of Communist Party of China again brought the requirement ofgiving full play to the initiative of the central and local government. Among the localstate-owned assets management and operations, it is more concerned for the currentlocal government to bring fiscal revenue via the capital operations. Operation of localgovernment for the state-owned capital is quite restricted under the system of "grading representatives”, and is desired to have greater autonomy. For this reason,theorists believe that the “hierarchical ownership of state-owned capital”is a moredesirable way. Thus, how to design the local state-owned capital operation under“hierarchical ownership” system has becomes a necessary topic to study.This paper, focused on the central issue of building the local state-owned capitaloperational system, has designed a local state-owned capital operation mode, which islinked to the relationship between ownership and operator, with a definite targetsubject and explicit target structure. It is based on the analysis and evaluation of the current local situation of state-owned capital operation, with the guidance ofadherence of socialist system, development and improvement of market economy.Also, it absorbs and learns the beneficial state-owned capital operation system designfrom other countries, with the main line to build a theory of state-owned capitaloperation, operator’s institutional settings, operating model design, operationsupervision, and operating earnings distribution. The paper can be divided into threeparts:The first part, namely the first chapter, starts from the basic concepts to definethe state-owned assets, the state capital, the local state-owned assets, and analyzes theproperties of the local state-owned assets, dynamical identification of localstate-owned assets, as well as their functional orientation, definition of concepts andprinciples of state-owned capital operation. After the systematic analyze oflocalization of local state-owned assets, as well as their operational status,it interpretthe effects and drawbacks of the current system of local state-owned capital operationand the problems exposed to illustrate the necessity for the further reform of localstate-owned operators.The second part is from Chapter II to Chapter III, this section discusses theconstraints of the local state-owned capital operation, which is the relationshipbetween central and local property, functional position of the local government.Chapter II starts with the relationship between central and local property, byreviewing the traditional "unified, hierarchical management” and the current “unified,hierarchical representative” system, and analyze its hidden drawbacks. For the currentrelationship of central and local property, it demonstrates the rationality andadvantages of implement the “the hierarchical ownership of state-owned capital”based on the constitutional perspective of the relationship between the central andlocal government, principal-agent theory, and practical needs of the local state-ownedassets.Chapter III is the relationship between the local government functionalconversions to the local state-owned capital operation. Under the current “taxfederalism system”, the central and local financial/administrative authority presents anunbalanced state that the local governments need to bear a disproportionate share ofpublic service with fiscal reduction. Faced with this situation, the local government, apublic law subjective has in parallel the identity of subjects to the private law in theexercise of the functions of the owner of the state-owned assets, in this way; the local governments will have the attributes of “economic man”. In other words, in theoperations of state-owned capital, the local government will use the control ofexisting resources to maximize their own interests, which would cause thenullification or impairment of the universal property of the state-owned capital. Forthis reason, the function of the local government is in an urgent need to be changed.Under the target mode of limited government, local governments need to play anadequate role of the public service functions, regulation, control, and supervision inthe state-owned capital operation.The third part consists Chapter IV to Chapter VIII, which systematicallydesigned the main body, mode, supervision, and budget system of the localstate-owned capital operation respectively.The chapter IV explores the relationship between the state-owned assetsmanagement system and the local state-owned capital operation. Generally speaking,the state-owned capital operation is a part of the state-owned assets managementsystem, as a link of management, operation, and supervision. Under the currentstate-owned assets management system during which the SASAC is on behalf ofpromoter representative, it has to re-design the state-owned assets managementsystem and state-owned capital operation system based on the universal property ofthe state-owned assets, since the SASAC could not be able to separate governmentfrom enterprises, due to the orientation of its positioning and functions undertaken.Under the new system of state-owned capital operation, it’s more advantaged todecompose the functions of the state-owned assets investment to decision-making,execution and supervision of investment. The National People’s Congress should begiven the right to decide the investment budget in order to materialize the rights forultimate owner, the budget and final accounts of investment should be specificallyimplemented by the financial department. As the government agencies and uniformedenforcement body, the state-owned assets supervision institutions should have a clearposition of the functions to exercise the rights of governmental supervision ofstate-owned assets; Establish the independent state-owned capital operating company,classified according to the existing field of state-owned capital, with the separation ofthe government, and act as a real subject from private law to participate in the market,operate according to market-oriented manner.Chapter V studies the “two-level” and “three-tier” operators as well as thesystem design of classified operating based on the current authorized operation model by state-owned assets. In case that the local state-owned capital is mainly presented inthe non-competitive field, it should be mainly in the way of authorized operation, withappropriate classification and stratification. This chapter also analyzes the “two-level”operator formed by the direct share holding of local SASAC and the local financialState-owned Assets Operation.Chapter VI discusses the subjective of local state-owned assets, the state-ownedcapital operating company from the macro construction and micro governance. Thissection first analyzes the problems existing in the construction of the state-ownedasset management companies by the local government, discussed the compelling localgovernment financing platform, and recommends the establishment of independentoperating company of local state-owned capital according to different hierarch andclassification. In micro-scale, establish the corporate governance structure in thecenter of the Board of Directors, and to fairly deal with the relationship among boardof Directors, the party committee and the management.Chapter VII explores the supervision of the local state-owned capital operation.At present, the local state-owned capital operation supervision relies mainly on thesupervision led by the SASAC. However, the functions of SASAC investorsupervision and Government administrative supervision are still indistinct, with itsunclear definition. Over other methods of supervision, administrative supervision isfacing the legislative vacuum and cross-case in practice, while the National People’sCongress, judicial supervision and social supervision, has continuously been in aweak position. To construct the reasonable and strong supervision system greatlybenefits the local state-owned capital operation. Thus it’s needed to strengthen thesupervision of the National People’s Congress, make up for the deficiency ofgovernmental supervision, regress the supervisory role of SASAC, strengthen thedisclosure of information of state-owned enterprises to safeguard the public’sknow-rights, ensure the independence of the judicial supervision, and establish thelitigation system of state-owned assets of public interest.Chapter VIII discusses the system of state-owned capital operation budget. Thestate-owned capital operation budget plays the role as investment decision-making,revenue distribution in the operation of state-owned capital. It is far beyondsatisfactory for the state-owned capital operation budget, the local governments hasmade many exploration to the state-owned capital operation budget. There are manydiscussible spaces as long as great achievement has been made, such as the convergence of state-owned capital operation budget to the public finance, selectionof the main budget management of state-owned capital operation, revenue andexpenditure range of the state-owned capital operation budget, the direction ofinvestment and expenditure of the state-owned capital operation budget, and thesupervision of state-owned capital operation budget, etc. The problems of whether thelocal governments can issue bonds associated with the state-owned capital operationbudget. In case that it’s not able to fully liberalize the local bond issuance, theinvestment and financing platforms of local governments, in behave of the debt ofstate-owned assets, need to be constrained by the state-owned capital operationbudget.
Keywords/Search Tags:State-owned Capital, State-owned CapitalOperation, Local State-owned Capital Operation, Legal Explor
PDF Full Text Request
Related items