Non-core Part Of The Restructuring Model Of State-owned Enterprises

In this paper a tentative study is made on the theoretic basis and measures of practice for the reform of state-owned enterprises, state-owned property management and corporate governance in connection with the successful trial of stripping-off and system reform of a big-scale state-owned enterprise Hengsteel Group. The essential viewpoint is that with the gradual perfection of market economy, conventional big-scale state-owned enterprises will transfer from the traditional multiple strategy to cost-leading strategy, and steadily promote the marketablization process of their non-core parts. Meanwhile, differences in captial structure, stock equity structure will directly influence the enterprise operation result. Due to financial lever effect, on condition that the total income is not changed, the higher the liabilities are, the higher the income of stock equity; Due to the excitation effect of residual claim, the more shares the operators hold, the better the effect of the enterprise operation profit. Therefore, the system reform mode of Dual Combination of the non-core parts of state-owned enterprises - the combination of owners and operators and the combination of equity restraint and creditor's rights restraint is proposed. On the ground that the anticipation of state-owned enterprise for the non-core parts is more to avoid risks (to maintain property) rather than to persue profits, in the process of system reform of the non-core parts of state-owned enterprises, the mother company should convert a substantial part of state-owned property as creditor's rights investment means into creditor's rights in its subsidiaries; while convert a small portion of state-owned property as equity investment means into equity in its subsidiaries to bring into full play the enthusiasm of the operators (including employees), to re-enforce the effectiveness of subsidiary administration, to control the risks of state-owned property so as to realize the double benefit goal of making the subsidiaries stronger and more powerful and maintaining state-ownedproperty safe, stable and free from loss of value. Therefore, to convert state-owned property into creditor's right is a new and effective way of managing state-owned property. It is also pointed out that with the development of the subsidiaries, channel and time for state-owned property to retreat should be properly chosen so as to make better use of fanancial lever effect; it is necessary to further encourage the operators to increase their hold of equity, to introduce other share holders and to promote continued, healthy and steady development of its subsidiaries.