Development Of Listed Companies In Sichuan In The Great West Development

It is a policy of the Chinese government to promote the development of west China. This policy, profound and made at the turn of the century, is closely related to the expansion of domestic needs and economic growth, to the ethic harmony, social stability and frontier consolidation, to the optimum layout of the productivity, the narrowing of regional gap as well as the harmonized development of the east and the west, and to the promotion of reform and development so as to maintain peace and order of our country. Sichuan Province holds a pivotal position in the west. Its economic development has direct impact on the whole west. As an important part of the economy, the listed Sichuan companies are to play a vital role in the economic development. As a result, the paper chooses to write about the Development of the Listed Sichuan Companies in the West Exploitation as a graduation thesis, wishing that it could be of some help to the economic growth of Sichuan. With the development of the economic system reform, the old planned economy system can no longer meet the requirement of the modern economic development, and proves to be an obstacle to its further development. To meet the needs of social progress and economic growth, the establishment of modern enterprise system has been inevitable. On the basis of the experiments conducted on the shareholding system, the listed companies appeared in the economic arena by the end of 1990. As Sichuan started early in shareholding system reform, there are a number of listed firms. Yet the stock reform is not cure-all. Despite the fact that most listed firms are leading companies or large-scale state-owned enterprises, some have been incompetent in the process of market competing. In this paper, some of these problems are discussed and personal opinions are offered. The outline of the paper is as follows. Part I General Survey of Listed Sichuan Companies I.1 Introduction of the issue and marketing of the stocks in Sichuan. Since 1993, there have been 53 enterprises listed in the stock exchanges of Shanghai and Shenzhen, which helped collect the capital necessary to the economic development of Sichuan. However, due to the historical and present causes, there exist many problems. I.2 A thorough introduction of the operation and management status of the listed companies in Sichuan based on the trade construction and the performance reports of these companies in the year 1998 and 1999. Part II The status quo of the listed Sichuan Companies. In this part, existing problems are raised at the analysis of the industrial structure, capital stock structure, profitability and the secondary market (SM). In regard to the industrial structure, the listed firms centralize in the traditional fields of industry and agriculture and have no industry advantage. In addition, the rising industries account for a minority part, and the resource waste is obvious. Consequently, it is of great importance for the listed firms to readjust the industrial structure. This is clarified in the aspect of farming, metallurgical and steel industry, liquor and high-tech domain. As to the capital stock structure, the listed companies in Sichuan fail to form scale merit and monopoly of business; moreover, the poor management and operation made it hard for these companies to expand by rationing shares and issuing new shares. And what's more, as most of these companies reorganized from the state-owned enterprises, there exist the problems of "One enterprise, four authorities" and the large proportion of the government-owned Stock, which hinders the establishment of management by a legal person. Therefore, on analyzing the stock qualification, the paper suggests several feasible solutions to the problem of nonnegotiable share. In the aspect of profitability, analysis is made on the poor performance of the listing companies and the influence over these companies exerted by asset rearrangement. Asset rearrangement, on one hand, brings life and vigor to...