A Study On The Group Management Mode Of Hebei Provincial Construction Investment Corporation

With the rapid growth of the market-oriented economy, and the advancement of the reform of supervision/ management systems and investment/financing systems of the state-owned assets, state-owned investment companies have achieved a great development: the size of assets has expanded quickly; the competitive edge has been upgrading; the principal businesses have become clear and concentrated gradually. With the extension of investment spheres, state-owned investment companies have to manage enterprises that have been rising in number and increasingly trans-regional, so correlations of investment holding have become increasingly complicated, and the management has got increasingly difficult. How to effectively supervise and manage numerous subsidiary companies involving highly diverse businesses is a pressing issue that state-owned companies have been thinking over and trying to address. How to effectively supervise and manage dominantly funded enterprises and partially funded ones for achieving maximization of overall financial results while ensuring maintenance and appreciation of state-owned assets has increasingly become an important mission facing state-owned investment companies. Thus it may be also said that integrating resources, innovating mechanisms, building specialized management systems and further upgrading management in response to reform advancement and needs of modern management has become a significant mission that state-owned investment companies need to accomplish during this new period of historical opportunities. As a result of years'development, Hebei Provincial Construction Investment Corporation has possessed the foundation for carrying out group management, but how to apply modern theories on group management, use advanced experience of domestic famous state-owned enterprises for reference and set up a scientific system of the parent company and the subsidiary company for achieving maximization of group's financial results has been placed on the agenda of management of Hebei Provincial Construction Investment Corporation as a pressing issue. The theoretical studies of group management by Chinese theoretical community had a late start, but presently such theoretical studies are accelerating markedly; particularly over the past few years, such studies have been advancing in an in-depth manner, and many innovative achievements of theoretical studies have been put forward. These achievements have been applied by an increasing number of state-owned enterprises, and under the theoretical guidance, many large state-owned enterprises have stepped onto the road of group development. Therefore, theoretical studies of group management have laid a solid theoretical foundation for advancing group management. How to apply domestic successful theories on group management in specific practices of Hebei Provincial Construction Investment Corporation has become a new issue needing our attention.This paper starts with theoretical exploration and studies on group management as part of China's newest fields of studies, and summarizes crucial issues that should be addressed in China's group management now. Besides, it makes an in-depth analysis of operation of group management modes of other domestic famous state-owned enterprises particularly state-owned investment companies, and the analysis focuses on their experience of success and lessons of failure. This paper states the present situation of operation and management of Hebei Provincial Construction Investment Corporation and its management process, and expounds its exploratory efforts and practices in group management. Based on this, this paper puts forward crucial issues and key links in advancing practices of the group management of Hebei Provincial Construction Investment Corporation according to the actual circumstances of the Corporation and up-to-date theories on group management and by using advanced experience of other state-owned enterprises for reference, as well as concrete methods of implementation and control. It is desirable that these methods of implementation and control give some enlightenment for the underway group management of the Corporation, and contribute to raising the overall management efficiency of the Corporation and thus achieving maximization of group company's financial results.