Application Of Valuation Methods Researched In State-owned Enterprise Reforming And Restructuring Of Dalian

Reform of state-owned enterprises (SOEs) is one of the key issues in China's economic reform. The reforming and restructuring is the core of the reform of SOEs and the only way of establishing a modern enterprise system. Because there are no past successful reform experiences in China for SOEs to refer, it is thus inevitable that a large number of disputes arise in the course of reforming. The main concern is focused on the pricing of state-owned property rights transfers. While the key issue of pricing is how to determine the total equity value of state-owned shareholders, to some extent, the determination will also provide critical reference data to pricing.Business valuation is the behavior and process that CPVs analyze, estimate and suggest professionally on enterprise value, total equity value or partial equity value, under special purpose of the base date of valuation. Therefore it becomes a critical question on how to choose and apply the appropriate valuation method, to fully reflect the total equity value of state-owned shareholders in the restructuring enterprise. It is with realistic significance to conduct a study in a great extend.In this paper, the conclusion is achieved through introducing the basic method of business valuation and current reforming situation of state-owned enterprises in Dalian, combined with the main concerns and solution in the valuation methods in Dalian, as well as the theoretical and empirical analysis on income method. In the process of evaluation, the cost method shall be improved continuously while the application of income method shall also be valued. In this sense, the total equity value of shareholders in the restructuring enterprises will be completely reflected and a rational valuation conclusion will be formed. And to some extend, this will become the important basis for the transfer pricing of state property, with an attempt to maintain the rights and interests of state-owned shareholders and to safeguard in a great extend to preserve and increase the state-owned property.