Research On Government-enterprise Relationship During Securitization Of Profitable Assets

The securitization of profitable state-owned assets that mainly includes holistic listing and core-asset listing has become a major method of regional state-owned assets and enterprises reforms in recent years. Securitization of assets is a reasonable way for capital-raising in the capital market. It has also become a hot topic in the theoretical and practical fields both home and abroad. The phenomenon originated from the United States but has been developing rapidly in China. It has not been limited merely in credit and non-performing assets like several years ago. It has become one of the top choices for some regional governments to do reforms on the state-owned assets and enterprises because of its conveniences on capital-raising.While driving the reform of the management methods of profitable state-own assets, the securitization of profitable assets has also brought the government-enterprise relationship into a new era. On one side, because China's traditional economic system has long been involved in its political system, the securitization will certainly affect the government-enterprise relationship and cause some changes on the political system. On the other hand, the regional government takes a clearer role as the investor after the securitization, which urges the supervision on state-own assets to become multidimensional that allows public supervision from the traditional single dimensional. Shanghai has a leading role on the securitization of profitable state-owned assets comparing to other city and regional governments in China. It also has a relatively higher level of securitization. The article takes Shanghai's reform as the example, combining the concrete efforts the city has made to adjust government-enterprise relationship after the securitization, to try to find a new way to reconstruct the relationship after large scale of securitization. The article also researches on the "Temasek Mechanism" being carried out by the Singapore government and compares the method with that of the new one. The main purpose of the research is to provide a new way for regional governments to improve the government mechanisms after large scale of securitization.