Sinopec Listed On The Financial Management Of The Transition,

In order to accelerate the process of SOE's reform so as to establish the new mechanism of capital injection for its companies, the state has come out a serial of policies to support large-scaled SOEs to carry out regrouping and financing internally and / or externally. And Sinopec's establishment and listing on overseas and domestic security market is just the result of those policies. As for those managing-levels from companies whose capitals are mainly composed of state-injected funds must keep conscious head that as it helps companies find the access to the funds needed for further development, and optimize their capital structures, listing is not the end of financing, but the start of being supervised by all stakeholders and the good opportunity for companies to change their managing ideas and to undertake the challenge of innovating their system, technology and management.The modern management theory reckons that the new outside environment and management aim, together with the management strategies that are adapted to meet the changes, should lead to the transform of the organization, method and human resources management. Listed on the market, the company turns the value orientation to the maximum of its value and that of its shareholders' returns, along with the diversion of its strategic cores including its financial management one. From that point of view, this dissertation, taking Sinopec's listing practice as its model, will discuss the way to transforming the financial management system successfully so as to help companies meet the intense competition of the market and the requirements of those precise investors and the authority.The first chapter introduces the specific motif of such large-scaled SOEs' listing as Sinopec's, and the effects of its capital decision-making particularity on the strategic reorganizing, the management system transforming, the listing operating and the management model adjusting.The large-scale SOEs, following the financial management system under the planned economy, contain their inborn defects and will meet tremendous difficulties and challenges on the way to listing. The second chapter, emphasizing the necessity of transforming, analyzes the obstacles SOEs will meet as they enter the capital market still with the conventional financial management system. The third chapter, integrating Sinopec's business and organization specialty and proceeding with the internal and external requirements of upgrading the financial management after the company is listed, raises a new model of the financial management system. By analyzing Sinopec's regrouping and listing, we can conclude that with current domestic political environment, the domestic and overseas capital market situation and SOEs' reforming process, it is unavoidable for SOEs to meet obstacles and challenges on the way of listing in the aspect of conventional financial management system. Therefore it is imperative that SOEs should transform the financial management under such situation to meet the needs of internal managers and outside stakeholders for financial information and to develop the earning capability of the companies. And the rebirth of the new system, by fully considering the concrete characteristics and requirements of the company and by inheriting the efficient management experiences, should introduce the modern financial management ideas, the domestic and overseas excellent practices and the advanced information technologies, adopt the scientific financial management method, reform the financial management configuration, and develop the management level in a large span, so that it will meet the requirement of the management decision-making after the company is listed, and support the company's strategies as a whole to realize the management aim of continuous development of the company's value.