Research On The Reform Of China’s Operational State-owned Assets Management System From The Perspective Of Governance Theory

After the 18^th CPC National Congress,there started to be an expansion of state-owned economy.Government capitalwas keenly looking for expansion and appreciation.The19^thCPC National Congress also proposed clear requirements on the appreciation of government capital that“the management of diversified governmental capital should be improved,the franchise operation needs reformation,the value and appreciation space of government capital should be ensured,and the expansion of scale and power of government capital requires more efforts.”However,the management system of state-owned assets for business operation imprisoned the business efficiency of government capital.The reform of such management system still lags behind the reform of state-owned enterprises（SOEs）.Government capitals are the material foundation to establish socialism with Chinese characteristics.The appreciation capacity of government capital is at the center of not only the reformation of SOEs in many countries but also the management and research of state-owned assets for business operation.Upon this circumstance,national policies suggest a turn from asset management to capital management,the implementation of which has already commenced.But theory research of capital management still falls behind practicality,an acknowledged system of capital management has not formed yet,and the reform still requires more theoretical instructions on the administration of operational government capital.The thesis of this paper is to analyze the essence of capital management in terms of the attribute of government capital and define the management of government capital according to three basic concepts of“governance theory”,suggesting that capital management should be oriented by administration and improvement of government capital,by comparing the concepts of“capital”,“assets”,“government capital”,“state-owned assets for business operation”and“non-government capital”.The management of government capital refers to the formation of a new kind of production relationship with autonomous organization and independent interest,under the guidance of free market,in structure of multilateral composition,and for unleashing the attribute of government capital.Based on a fact that currently the supervision mechanism of China’s government capital is frustrating,that coordination lacks to maintain multiple participating subjects,that principal-agent relation is not smooth,and that business operation lacks autonomy,the paper suggest to refer to three basic principles in governance theory:participation of multiple subjects,dependence of interest among subjects,and self-organization,which could help clarify a framework of managing government capital.The essential part of this paper is to argue that the reform of China’s state-owned assets for business operation should be steered to the management of government capital.The specific argument lies in that the three inclinations of reforms of China’s state-owned assets for business operation could indicate three features of the management of government capital.The first,the diversification of sponsorship in SOEs;second,marketing-oriented management of government capital;third,the gradual integration of the interests for sponsor enterprises.The paper adopts conventional research and empirical perspective on the analysis.The former includes history and foreign experience on management reformation of government capital,while the latter mainly refers to the abstractive regression of three features of managing government capitalfor verification of the influence imposed by the management of government capital on its appreciation.The eventuation of the argument:whether the reform of the management of government capital in China or foreign experience in the same sector,it is proved that the reformation trend of the management of government assets for business operation reflects characteristics of managing government capital.Empirical study verified that the management of government capital is good for its appreciation,and that the reform on the management of government assets for business operation complies to the law of capital appreciation.Gist:The introduction clarifies the significance,methodology and theoretical foundation of the study,which includes the governance theory,the capital theory and“self-organizing theory”.The second chapter of literature summarizes the direction of current study of the management of China’s state-owned assets:multiple participants of SOEs,avoidance of administrative intervention,and grant of autonomy to SOEs,which extends to the finding that there is no study outcome on the management of government assets for business operation from perspective of governance theory.The third section analyzes the current situation and existing problems of the management of China’s state-owned assets:inadequate coordination to maintain multiple participating subjects,difficulties in principal-agent communication,and insufficient autonomy in business operation.The fourth section focuses on the feasibility to apply governance theory on the management of state-owned assets.By clarifyingthe concept of government capitalmanagement,the notions are suggested that accordingly management is beneficial to release the appreciation potential of government capital and that the reform direction of the management of China’s government assets for business operation is the management of government capital.The fifth together with the sixth section is about the verification which begins with the review of China’s historical policies on managing state-owned assets,and a study of foreign experiences,which proves the feasibility and applicability of three principles of governance theory in management of state-owned assets.The summary takes off respectively from participating subjects in national economy,management modes of government assets for business operation,and autonomy of SOEs.The seventh chapter is about empirical arguments on verification that management of government capital is good for its appreciation capacity.The sponsor pluralism is good to increase the ROEs of state-owned listed enterprises,market-oriented operation is good to increase the ROEs of SOEs,and companies injected with more autonomy and investment from government capital has a higher ROE.The eighth chapter summarizes the study outcome and policy-related suggestions.The characteristics of managing government capital are shared by the management reform on government assets for business operation both domestically and abroad.The reform complies to the law of capital appreciation.The policy-related suggestions include a clear identity of the institution supervising government assets for business operation,an advocate for sponsor pluralism in operating government capital,an improvement on management of market-oriented government capital,and a call for more autonomy to government capital investors.The renovation of the paper is mainly about the perspective.Based on the governance theory,the paper talks about the reform of management of China’s state-owned assets.Domestic study currently focuses on property right theory and principal-agent theory when discussing the reform issues of management of state-owned assets.However,there has been no clearly suggested academic views on government capital management.The paper sets off from the three principles of governance theory to analyze the current management of China’s state-owned assets.Multiple subjects,dependence of interest among subjects,and self-organization together offer a comprehensive method to observe the management of state-owned assets,and define the basic concept of government capital management.According to the characteristics of managing government capital,three inclinations of reforms on China’s stated-owned assets finally come into shape:the first,pluralism of sponsorship in state-owned enterprises;the second,market-oriented management of government capital;the third,general completionand standardization of legal rights for investors in government capital.Moreover,an empirical study concludes that the motivation powering the management of government assets for business operation in China is the law of capital appreciation.