GY Group Corporation Of Xingzhong Municipality

In order to explore a new way for state-owned enterprise reform, Xingzhong Municipal Government has established a GY group corporation of the public utility category by introduction of professionals from other sectors at the beginning of 1998 according to the requirements of modern enterprise system operation.After the establishment, the GY group optimize its liability structure to relieve its financial burden by making use of the stable cash flow of the traditional public utility enterprise and through the operation of the settlement center, by which the group has grown up rapidly to a trans-regional and pluralist enterprise group from a local one, initially forming a middle-scale state-owned corporation with good assets.Since conflicts still exist between the operational model of the settlement center and the existing financial laws and regulations, the key point should be on the improvement of the management and control of the settlement center, while the capital relation between the government and the enterprise should be handled well and the government's administrative interfere in enterprises should be reduced. This is the key to carry out the state-owned enterprise reform smoothly.