Discussion On The Circulation Of State - Owned Shares Of Listed Companies

The share-holding system has been an effective instrument of the state-owned enterprises reform and fund-financing after it was conducted in our country. However,as the stock market emerged,it is filled with Chinese characteristics-state-owned stock,legal person's stock and public stock,most of which cannot be listed. Such a stock structure is becoming more and more harmful to the development of enterprises. Meanwhile,it also affects the development and integrity of our stock market,which in turn prevents the development of the country's economy. Thus,how to solve the problem on the circulation of state-owned stock and legal persons' stock is an important question In the process of developing economy.Academic circles initiated a hot discuss on the circulation problem after the stock market was set up. State-owned stocks can only be transferred between state-owned enterprises or the governing departments of state-owned assets or other qualified legal persons before. All these approaches cannot solve the circulation problem of state-owned stocks. A recent publication,(The Determination On Some Important Questions Of State-owned Enterprises' Reform and Development By The Party Central Committee),directed the reform and development of state-owned enterprises. According to the requirements of (Determination),state-owned enterprises must be carried on strategic adjustments-suggesting the importance of realizing the circulation of state-owned stocks in listing companies. The (Determination) also indicates that some state controlled listing companies which have well reputations and developing potential are permitted to appropriately decrease shares of state-owned stocks on the condition that the prevalence of state-owners is not affected. The Chinese Security Supervisory Committee published some policies on the decrease of state-owned stock holding on Oct 26,1999. The decreasing of state-owned stock holding will first be realized by quota-sale and the experimental approach was published clearly. All these steps indicate that the solving approaches have been in substantial practice. However,the quota sale performances of two experimented enterprises are not satisfying. Therefore,we have to further discuss the problem on the circulation of state-owned stocks.This dissertation begins with the condition of stock structure of our country's listing companies,specifying some mistakes appearing in the conclusions on the backgrounds of incirculations and on the circulation of state-owned stocks. Then I analyses the meaning of realizing circulation to the management of state-owned assets,the development of enterprises and the improvements of the stock market. I also discuss how to realize the circulation of state-owned stocks. At last,I compares some models which may be applied to specify that we must consider carefully,plan precisely and arrange comprehensively on the question of circulation of state-owned stocks.