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The Difficulty & Mode Selection Of State-owned-assets Retreating

Posted on:2005-09-10Degree:MasterType:Thesis
Country:ChinaCandidate:H ManFull Text:PDF
GTID:2156360122499501Subject:Industrial Economics
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â… . The importance of retreating of state-owned assetsOn one hand, from macroscopical point of view, the social function of state-owned enterprise is more important than it's efficiency. That is to say, state-owned enterprises should provide necessary industry and service needed by the society which the private enterprises wouldn't provide. So, state-owned assets can be used more efficiently only if they retreat from those competitive fields where they have no predominance. On the other hand, from microcosmic point of view, the ambiguous property right of traditional state-owned enterprise results in the defect of its managing structure. As a result, Adopting effective mode, accelerating the orderly retreating of state-owned assets from competitive fields, shortening the time delay of system's changing and reducing rent-seeking activities in translation are very important for completing economy reform smoothly and establishing the socialistic market economy.â…¡. The difficulty of stated-owned assets retreatingThere are some problems and obstacles in practice which make state-owned assets can not retreat or dare not to retreat. â… ) The loss of state-owned assetsBecause the property right is not complete in the administrant system of state-owned assets, the loss of state-owned assets that nobody take charge in will lose when they are exchanged. But it should be clarified that some factors, such as employment, debts and the rigid mechanism of management, can affect the market values of state-owned assets. Considering such factors synthetically, the price of state-owned assets may be lower than its reset value. So, the transferring price of state-owned assets should be defined rationally. â…¡) The problem of employeesIn the retreating process of state-owned assets, the latent unemployment becomes dominant. As a result, there are large quantities of unemployed, laid-off people. In the situation that we still have no perfect social security mechanism, the treatment of these people cannot depend on the social pool organization totally. If this problem is not handled properly, not only state-owned assets will fail to retreat, but also may it cause serious social problems. â…¢) The problem of debtDuring the retreating of state-owned assets, the liquidation of enterprises will appear. Because there is a great deal of bad debts in state-owned enterprises, the interests of creditors that should be repaid after others according to The Bankruptcy Law will be damaged. The creditors are mostly state-owned banks. If this problem is not dealt properly, it may jeopardize the safety of finance. So how to protect the interests of the creditors is one of the obstacles affecting the retreat of state-owned assets. â…£) Financing obstacles of assets purchaserIn order to prevent loss of state-owned assets, the supervision that we make over to state-owned assets' transferring is stricter than to general ones, which lead to the financing difficulty of purchasers. If the purchasers are employees or managers of the state-owned enterprises, the capital source becomes a main obstacle for state-owned assets' retreating. â…¢. The mode of state-owned assets' withdrawing Because of these factors, the withdrawing pace of state-owned assets is slow. So it's important to take some flexible measures to overcome the difficulties. We can take several measures:â… ) state-owned stock transferi) ESPOIt means that the employees purchase the stock of state-owned share-issuing enterprises. If the whole state-owned stock is transferred, the transfer price should be assessing prices minus the compensation for the employee's identity. If part of the stock is transferred, some income from the transfer should be paid to purchase the identities of redundant employees and remove the working relation, which will create good conditions for joint-stock companies. This mode is suitable for some small joint-stock companies or subsidiary companies of big enterprises with better profit which have set up for at least three year...
Keywords/Search Tags:State-owned-assets
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