Study On The Capital Reorganization Of Chengdu Hongguang Industrial Co.,Ltd

This article consists of 6 sections. Section 1 supplies information on background and significance of the chosen topic. It deals with the necessity and the in-depth meaning of the reorganization of enterprises as well as the advantages in large-scale economical efficiency, improved management competency and increased competitive edge achieved through the M&A. Section 2 deals with the basic theory and mode of the capital reorganization. Section 3 deals with the national environment for the reorganization and M&A in China. Section 4 is a description of the successful capital reorganization of Honggunag and deals with the capital participation of Ancai Group and Guangdong Fudi in the Hongguang Company. Section 5 is a theoretic elaboration on the successful reorganization of Hongguang with the conclusion that the socialist state-ownership system is advantageous for capital reorganization. Section 6 is a reflection on the case of Hongguang. The logical conclusion is drawn that during the course of changeover from the oldownership system to the new one enterprises have no other alternative but to change their business mechanism and it is imperative that the government authorities and the enterprises be separated from each other, otherwise companies which have performed the ownership changeover are likely to fall into difficult situations again. Finally a brief sum-up of the whole article is provided.