Chinese State-owned Joint-stock Enterprise Rights Structure

Twenty years ago, the reform of the state-owned enterprises remained at the period of contract system. The problems of property right were really difficult to handle. Ten years ago, when we concentrated on the enterprise reform and the business failure, the 3-year-plan of getting rid of poverty was still running. Now, the company reform based on the capital market has become the core missions of the state-owned enterprise reform. We push the central enterprises forward to be listed outside China because we want to pull the mature and canonical capital market into the internal parts of our enterprises. This can guarantee that the enterprise recombine before being listed and operating after being on the market should be able to reach the request of the international capital market.We see that, after 30 years'exploration and a series of experimental work, the betterment of legal system of the modern enterprise system of the state-owned enterprises has been on the right normalized and international path. The target of the state-owned enterprise reform should be on the basis of the perspicuity of the relations between ownership and management of enterprises and the unity of power-responsibility-benefit. The system of checks and balances and the system of incentives and supervision should be formed among all the subjects of right of every enterprise. This can increase the efficiency of operation utmost. As a matter of fact, the result of the shareholding reform of the state-owned enterprise is not as good as what people are expecting. The business efficiency of enterprises which have brought about reform hasn't been raised evidently. China is at the transition period from traditional planned economic system to socialist market economy system. The ownership structure and the internal administration structure of the state-owned enterprise reform still have a lot of malpractice, such as the unreasonable equity structure, lack of investors of the state-owned shares; the function of board of shareholders, the Board, the board of supervisors and managers is not in place. To aim at these problems, this text brings out the following countermeasure:to reduce state's stake in listed companies; to complete the defense mechanism of minority stock holders; to improve the delegacy of a system for investors of state assets; to restrict from power to power; the restriction mechanism of power among board of shareholders, the Board, the board of supervisors and managers should be effective; to urge the diversification in roll of the government. Through the problem-solving, we believe that the power structure must play a core effect role during the process of the shareholding reform of the state-owned enterprises in order to advance and increase the enterprise efficiency.