Investigation Report: Capital Reorganization Of Listed Company Of Fujian

Fujian Province was one of the provinces earliest to adopt the "open-door" policy in China. It has made great strides in the reform of stock systems and the public issue of stocks for the companies. The companies whose stocks are listed on the stock market have played an important role in the development of the economy in the whole province and has a large share of the capital market. Fulian Fujian (its stock code is 600659) has been listed on the Shanghai Stock Exchange since 1993, and up until 31st December, 2001, there were forty-two companies whose stocks were listed on the stock market. These companies are ranked tenth in the nation and have raised funds totalling RMB 9.73 billion. However, the plate stock companies of Fujian Province have some problems such as small-scaled capital stocks combined with low efficiency of the whole operation. In addition, they were affected by the economic crisis of south-eastern Asian countries. The achievement of tlie plate stock companies is behind the national average, which is an obstacle to the circulation of funds and sustainable and stable development. Therefore, capital reorganization is an important way to upgrade the poor operation of stock companies and to improve then* competitiveness.Based on the published information of the listed companies and his visits to some listed companies with the relevant research group, the author in this thesis points out that it is necessary to reestablish the assets after having given a full analysis of many factors including the structure and operation of capital stocks of the Fujian plate stock companies. In the light of the trend of development and the experience from capital reorganization of Shanghai andShenzhen listed companies, after having analyzed their present situations and existing problems, I then puts forward this suggestion: Government should have a priority in order to guide and support capital reorganization of the stock companies of the province; the listed companies need to improve their core competition by means of resource conformity and capital reorganization and to adjust the structure of production with the backing of the resources of Fujian Province; they should enhance the efficiency of capital reorganization of the plate listing companies so as to strengthen them by the way of reducing the proportion of state-stocks, using an efficient mechanism and adopting an independent board system.