Pudong, Shanghai State-owned Corporate Governance Structure

Currently, international academic field has conducted a fairly comprehensive research on corporate governance. Corporate governance research in China is hot too, especially in the field of corporate governance of State Owned Enterprises (SOEs).These theory about SOEs' corporate governance disclosed the problems of corporate governance that SOEs are meeting with and the reason why the SOEs have these problems.This paper is trying to research the actuality of corporate governance of SOEs through a case study: Corporate governance of SOEs in Pudong Shanghai, which is owned by the State-owned Assets Supervision and Administration Commission (SASAC) of Pudong Shanghai. There are two aspects of problems about corporate governance of SOEs of Pudong: firstly, systematic problem, unclear responsibility in corporate governance of SOEs due to unclear ownership structure and unclear of function positioning of Pudong SASAC; secondly, operational problems, such as problems about selecting, inspiriting and restricting directors. Then we used theories about corporate governance of SOEs to analyze the reason why these problems issue. The main reasons are: on the systematic level, unclear ownership structure result in function positioning of Pudong SASAC becomes blurry, then corporate governance of SOEs become not clear; on operational level, incomplete system of selecting, inspiriting and restricting directors results in the Board of Directors can not operate normally. Finally, the paper included four suggestions to solve these problems according to the relative theory and status of SOEs in Pudong: 1, Clearing positioning of Pudong SASAC; 2, standardization of structure and function of corporate governance of SOEs; 3, setting up completed operation system for Board of Directors; 4, setting up completed operation system for supervisory board.