Analysis Of SOE Property Rights System Roform

The State-own enterprises have been playing a very crucial role in our economic development and construction due to their stupendous size and extensiveness of their scope. The 15 party conference pointed out that "good management of SOE is significant to the establishment of socialist economic system and the solidation of socialism." And the crux of the SOE reform consists in the reform of old property right, the heart of the economic system reform and the prerequisite and basis forthe establishment of modern corporate system.This article with the analysis of the traditional property system finally draws a conclusion that the old-fashioned property system is devoid of energy because of the linkage of government and enterprise, of bureaucratic management, The SOE bound by the profits and interests, could not successfully foster a system that's full of incentives and regulations, because the SOE reform does not include a fundamental reform in property rights, simply relaxing its power while strengthening interest reform. SOE property rights reform should clearly define the relations between the main body of the property rights and the inter-linkage relations, so as to establish an effective agency system, improve incentive and regulatory system and to better conduct management innovation.