Studies On The Personification Advantages For The Private Capital Participate In The Reform Of SOE

Private capital has experienced 30 years of development and accumulation of growth, which has greatly promoted the economic growth of China. In this context, majority of Chinese and foreign scholars from the field of Management Science and Economics have done a lot of research on private capital. Having studied lots of Literatures of domestic and foreign scholars, the paper aims to explore the theory basis and practical effect of private capital participating in SOE reform. The advantages of personified private capital compared to state-owned capital are clarified from the private capital's personification, the supplement of personified private capital to the absence of state-owned enterprises'investor, to the ways for private capital to participate in SOE reform.Max proposed that the capitalists are the personification of the capital and at the same time he pointed out: " The roles people play in the economy is the personification of economic relations " Today we explore the personification of both the state-owned capital and private capital and the differences between them. Firstly, it is the training of collective conscious and economy of state-owned or private enterprises that the key issues of the personification of the state-owned or private capital we proposed. Secondly, there are significant differences in management mechanisms between the personified state-owned capital and personified private capital. The privatization of some state-owned enterprises is a way to solve the essential problem of the personification of capital. The private capital is more dynamic than state-owned capital and has a high degree of personalization than state-owned capital. So the private capital can be used in promoting the reform of state-owned enterprises as a supplement of the shortfall in the personification of capital in the SOE. It is stated in this paper that private capital is a measure to reinforce the congenital deficiency of state-owned enterprises -- "the investor Absence". The economic function of personified private capital went through nearly 30 years of the private economy development. The 30 years development of private economy has solved the problem of their existence and its way of sustained development. Along with economic information becoming more important and the wave of globalization, some entrepreneurs with both knowledge and private capital has become a market economy leader. Economists described the development stages of the private economy from different aspects, in which it is not difficult to find that the development of the private economy is the process of private capital bred and the growth of the accumulation. The independence of private capital that the entire society recognized is entirely reflected in the development of the private economy orbit. It is necessary to keep the independence of private capital. Therefore, the independence of private capital is the premise for private capital to participate in SOE reform. Private capital has played a tremendous vitality in the areas where the state-owned capital has been withdrawed. With the private economy's rapid development, the private economy's political status, economic status and legal status being further improved, The scale and reality of private capital can no longer meet the single type and un-completely entering into the state-owned enterprises.Based on the review of the history, the field of trade and distribution of the regions for private capital to participate in SOE reform, the path is put forward for the private capital to participate into the reform of state-owned enterprise. Private capital has got an unprecedented opportunity of development with rapid accumulation of private capital, the social status improving of the private economy and the entire community's ultimate approval. The private capital has entered the regional infrastructure sector and community cause, which showed that the strong interest of private enterprises in these fields; It should be encouraged that private capital participate in the development of high-tech enterprises as long as the advantage for Private capital investing in high-tech industries is observed; Private capital investors have a very mature experience as well as the concept of rational and more standardized management in the traditional services, which are the first "position" and "The first piece of the sky" of China's private economy. Private economy has absolute advantage in the investment in this field. Private economy has distinct advantage too in Small and middle scale education, health, sports, industry. But private capital investment will have no advantage in the scale economy field, because private capital is not an effective concentration slightly Coalition; It is proposed that the field for private capital into China's state-owned enterprise should be expanded so as to catch up with China's rapid economic development. The advantages of private personified capital are in production and operation efficiency, market viability, corporate culture and other areas. Private capital can enhance the production efficiency because the private enterprise managers know more about the relationship between enterprise and its staff. They know better by coordinating the interests and the interests of staff and the relationship between the staff to stimulate the enthusiasm of enterprises so as to create more receipts, they generally do not "compromised" a foolish way to seek personal interests. After the reform of enterprises and cost-effective production is directly related to the operational efficiency. Private capital upgrades the reformed enterprises in the market viability, flexibility and efficiency of private capital. The advantages of private capital personification are that private entrepreneurs take risks in the responsibility. Private capital has played a valuable role having participated in SOE reform. The advantages of personified private capital entering the new enterprise have been created and enhanced core competitiveness. Private capital promotes the building of the enterprise culture consciousness. New Enterprise Culture boosting the development of the enterprise modern enterprise inevitable development. More fascinating enterprise culture and the development of modern enterprises will be formed meaningful virtuous circle. Our modern businesses will continue to move toward prosperity.In January 20, 2005, Changchun Xingyu Group based on Changchun City "parallel" policy, according to the "merger" process, submitted to the Enterprises Reform Office of Changchun City the "Changchun Xingyu Group merger application Report". Then, the reform of the big state-owned enterprise in Changchun City was carried out. After 13 months of restructuring, the work achieved the desired results. Not only in Changchun, capital of Jilin Province, but for the same industry, the successful reform of the enterprise has set an example for private capital to participate in SOE restructuring.Finally, the conclusion has been achieved that the advantages of personified private capital participate into SOE reform must be customized and local conditioned. By combining statistical analysis and case analysis, the study reveals positive and practical significance of the reform for private capital to participate in the reform of SOE.