A Study Of The Exchange Of Property Rights Of State-owned-enterprises

Ever since China's reform, the reform in economic system has been theinitial mission. The reform of SOE(state—owned enterprises) is the mostimportant one. With the experience in the past years, we are pleased to findthat the SOE reform has achieved a lot. At the same time, we should be awarethat some series problems come out in the process of SOE reform. Theseproblems are the barriers on the way of reform. Among them, the exchange ofproperty rights of SOE is the hot and fundamental topic.Property rights is not a strange topic for us. In China, the research in thisfield developed only after reform. Until now, there are two phases in theresearch for property rights. The first phase is focused on the meaning andimportance of the reform of SOE. The second phase is focused on the vividityof property rights.First, there are some basic concepts about property right. For example,the existence form of property rights, the object of exchange of propertyrights, the form of exchange of property rights and the function of propertyrights. There are one important point: I clarity the concept of property rights.The property rights refers to the rights that will bring certain benefits to ownersdepending on the ownership, possession, administration and disposition ofenterprise assets.Among the theories about property rights, I will elaborate on the CoaseTheorem which is representative. Coase Theorem is a theory about relationamong the mechanism of property rights exchange, the cost of property rightsexchange and the efficiency of resources collocation. It is the essence ofmodern theory of property rights. Its main idea is about the relation amongproperty arrangement,exchange cost and the efficiency of resource allocation.The first part is that the initial partiton of property rights can be done throughmarket. In this way, the aim of best collocation can be achieved. The secondpart is about the further research of initial partiton of property rights. In fact,itis description of the facts. The theory about the exchange cost is the base andgoes through the research. It is Coase contribution that put exchange cost intoeconomic analysis.Modern property rights system is a spanning change in property rightshistory. In the last part of theory, I specialize the character of the modernproperty rights. The first is that property rights is clear. The second is that theproperty rights is marketized. The third is that the ownership and themanagement are separated. The fourth is that the property rights are guaranteeddefinitely. The fifth is that limited company has become the demonstrativeform of the enterprises'assets structure. In this way, we have a cleareracknowledgement of property rights.China has been a member of WTO. The SOEs face great challenge. TheSOEs in China are set up on the basis of public-owned system. The reform canbe carried out without the adjustment of possession system. If we take thelimitation of reform measures into account, there are some problems in theproperty rights exchange. The first is that the SOEs have problems itself. Thesecond is about the disorder of the development of intermediary institution.The third is about the difficulty of property rights exchange.For the problems mentioned before, it is the key point that we should dothe job of property rights exchange well. It is the requirement of developingmarket economy. It will benefit the enterprises when they change theirmanagement mechanism. It can pour new energy into the enterprises and willbenefit other activities in the reform of SOEs.Property rights is a global problem, the western nations has accumulatedlots of experience in the long period of enterprise management. The worldeconomy has been integrated. These experience and measures are very usefulfor us.The experience in France is helpful. The experience in the process ofproperty rights exchange in France benefits us a lot. We can refer to theirexperience, then do the job in China well.To smooth the process of property rights exchange,I bring forward somesuggestions. According to the content of the 16th national people congresssession, most SOEs can be limited. It requests a mechanism to guarantee thestated owned assets flow. The property rights exchange in China is large andbroad. It involves many problems. We should take the specific situations intoaccount when we do it.We should do it in a specialized way. In a word, we should consider itall—around. First, we can consolidate dominance of the big enterprises throughtactic transfer, systematic reform, structural adjustment. We can make theownership plural through merging or acquisition. Secondly, we should makethe manager of property rights personification. At the same time, we shouldset up related measures to ensure the property rights exchange can go smoothly.For example,we can renew our ideas,we can build favorite environment andreinforce the basic management of state owned assets, develop the propertyrights exchange market.