Improvement Of The Contracted Management Of The State-owned Capitals

State-owned assets are essential to the nation's economy.State-owned capital (operational state-owned assets) accounts for 66.91% ofall the State-owned assets local state-owned capital accounts for 52.2%.Large numbers of small and medium size state-owned corporations, which arevery important to the local operation of state-owned assets, are widelyscattered. In respect of the assets, capital and production value, they constitute1/3 of the nation's economy. Thus the success of the operation of thestate-owned capital largely depends on management of the local small andmedium size state-owned corporation. That is why during the 20 years'reforming and opening,'open and activate the small and medium sizestate-owned corporations 'has always been emphasized by the state and theparty. However, despite for the many explorations as to the operationmechanism of the small and medium size state-owned corporations that havebeen made in the practice, inefficient operation and loss of the state-ownedassets still exist. According to the spirit of the interim meeting of the 16th partyconvention, different small and medium size state-owned corporations willhave different future in the next few years. 1.Those qualified will betransformed to stock corporations. 2.Those in accordance with the drop outcondition will be sold out. 3.Others shall become more competitive throughself-improvement. Notwithstanding, we shall be aware that large numbers ofsmall and medium size state-owned corporations with lots of employees andtechnologies that is out-of-date are widely scattered not only geographicallybut also over all kinds of industries, which make stock-transformation and 3sold out impossible to be completed within a short period of time. During thetransitional period, we should adopt efficient operation modes to maintain andincrease the value of the state-owned assets.The transitional operation mode used in the small and medium sizestate-owned corporations shall fit for their characters and developments.Contracted management, which was quite popular in the large and mediumstate-owned corporations in 1980s and 1990s, is a convenient and adaptivestate-owned operation mode. Can it be used in the small and medium sizestate-owned corporations? That will depend on the summarizing andinnovation as to the contracted management both practically and theoretically.This dissertation will start with the contracted management's history and itsinevitability in our times. The rationale and methodology is to base thedetailed analysis of the contracted management, related theories, regulationsand the market on the practical experience. Possible improvements of thecontracted management of the state-owned assets will be discussed.The conclusion of this dissertation is that contracted management is aconvenient and adaptive mode that could successfully accomplish theseparation of the ownership and the management of the state-owned capitals.It does fit for the small and medium size state-owned corporations during thetransitional period. We may face difficulties while implementing themechanism of contracted management. However, with the major breakthrough in the reform of administration of the state-owned property and theformalization of the country's market, improvement of the mechanism can beconsummated. Finally, the laws and regulations shall be modified to protectall the improvement and innovation.The modification of the laws and the regulations lies in the restructure of thelegal relationship involved in the contracted management. It is crucial toclarify the subject, object and content as well as the rights, responsibilities andprofits that may arise. The restriction upon the exercise of the subject's powerand responsibilities shall be emphasized. As to what constitute the object ofthe contracted management, is it the profit, state-owned properties or thest...