Thought On The Reform Of Managerial System Of China's State-owned Assets

The strategic plan for the reform of managerial system on state-owned assets was made during the 16th National Congress of the Communist Party of China (CPC). From then on, the reform of managerial system on state-owned assets was carried out in all aspects. Through the constant deepening reform in the last two years, the rudiments of a new frame of managerial system on state-owned assets have been formed. The supervision and management of state-owned assets has come into effect as well. However, there are still some theoretical and practical issues to be resolved in the new managerial system on state-owned assets and some issues of manipulation to be pinpointed. It is an urgent issue for us to improve the new managerial system on state-owned assets. Therefore, it is of great significance to strengthen the research on the reform of managerial system on state-owned assets. This article makes a study of the issue of the perfect boundary and the history and status quo of managerial system on state-owned assets, in terms of some economic theories related to modern economics, property rights economics and transitional economics, starting from the situation of our country and comparing for reference the experience abroad, and point out the problems appearing during the process of building the new managerial system on state-owned assets and give some suggestions. This article falls into three parts. State-owned assets and their managerial system are expounded in the first part of the article. First, State-owned assets are defined and classified and its function studied. State-owned assets can be divided in narrow sense and broad sense. State-owned assets mentioned in this article are from the angle of narrow sense. State-owned assets can be divided into different categories from their form, purpose and character. State-owned assets have the functions of improving economic development and realizing the social stability. At present, our country is at the transitional stage of striding forward the socialist market economy. During the special stage, the functions of state-owned assets have some apparent features of the stage and of serving the stage. Second, through the study of the issues such as the characteristics of the property rights of state-owned assets, from which the principal-agency results, the inclusion that the inherent cost of managing state-owned assets is high is reached. Under certain political and economic circumstances during a certain period, the inherent high cost of management of state-owned assets and the necessity of its existence will bring on the perfect boundary of a country's state-owned assets, that is, the perfect rate of state-owned capital in social capital. Third, the meaning of the managerial system on state-owned assets is elaborated. The chief issues of the managerial system on state-owned assets to be resolved are how to deal with all the intrinsic relationships among state-owned property rights and relationship between state-owned property rights and other non-state-owned property rights. State-owned assets have the following three modes of management: the mode of centralization, the mode of decentralization and the mode of centralization and decentralization. In the second part of the thesis, the history and status quo of China's managerial system on state-owned assets are expounded. First, in the light of historical logic, the causes of managerial system on state-owned assets coming into being and the abuses before China's reform and opening toward the world and several stages of the reforms of managerial system on state-owned assets after China's reform and opening toward the world respectively. Then, from the basic featureas, four basic elements and their correlation, the general frame of the managerial system on state-owned assets is discussed. How to further improve China's new managerial system on state-owned assets is researched in the third part of the paper. First, the features of the overseas managerial system on state-owned assets and their reform and development trend are studied. Some enlightenments from the experience of overseas managerial system on state-owned assets over China's managerial system on state-owned assets are drawn: 1. to reform from the domestic situation; 2. to create a favorable climate of reforming managerial system on state-owned assets; 3. to separate governmental functions from enterprise management and realize the separation of ownership and management; 4. to make supervision public; 5.to foster and improve entrepreneur market; 6. to set down feasible profit objective; 7. to classify state-owned assets to manage; 8. to attach importance to the governmental quality construction; 9.to reinforce the legislative management of state-owned assets and form a uniform legal system of state-owned assets management. In conclusion, the paper makes an analysis aiming at the theoretical and practical problems existing in the reform of the present new managerial system on state-owned assets and gives some suggestions: 1. The aim of management of state-owned assets should not only seek "developing and making state-owned economy strong to maintain the value and increment state-owned assets", but to maintain the social stability and economic development of a country under certain circumstance to maximize the welfare of the whole people. Blindly seeking "developing and making state-owned economy strong to maintain the value and increment state-owned assets"will make state-owned assets deviate from the perfect equilibrium point and damnify the welfare of the whole people. 2. Under the "classification representatives"mode of"the central and local governments respectively carry out the donators'duty on behalf of the government", the exertion property boundary between the central and local government should be appropriately and definitely ascertained. 3. The law on State-owned Assets should be made as quickly as possible to bring the supervision on state-owned assets of Congress of the Communist Party of China (CPC) on all levels into play. 4. To establish and improve the budget system of managing state-owned assets. Though the budget drafting procedure of managing state-owned assets is made by the Council of State-owned Assets, it cannot be divorced from the Ministry of Finance. After the budget drafting procedure is made, it should be checked up by the Ministry of Finance and then it is to be approved by the Congress of the Communist Party of China (CPC). 5. The coordination of the benefit of every side in the reform of managerial system on state-owned assets should be well dealt with. The expression system of every group of interest should be established, especially those who are inferior in every aspects. The reform should be put into the frame of law and the justice of procedure be emphasized.