Xi'an State-owned Property Rights Reform And The Implementation Of Mbo Conditions

In 2003, the gowernment of Xi'an has carried out new policies to speed up the tempo of property right reforms. Their main aim is to withdraw a portion of government capital from government-owned corporations. After a year's efforts, they had achieved little. In order to make further improvement, the government expected to make a breakthrough in MBO.This paper takes the state assets property right reforms in Xi'an as the research background. With reference to overall exposition about Management Buy-outs(MBO) and Chinese MBO experiments, the author puts forward the feasibility and limitation for the application of MBO with Xi'an in aspects of its precondition.Proceeded from the actual situation ,there is provided with some possibility for putting MBO into practice in the property right reforms of Xi'an SOEs .First, in Xi'an, a large number of government capital exist in medium-sized and small enterprises which has hindered the development of Xi'an economic. MBO is a effective measure to accelerate the reform, especially for medium-sized and small enterprises. Second, a large number of enterprises in Xi'an belongs to competitive field and lacks stimulate, so the managements are willing to carry out MBO. In addition , the government encourage the manangment to do so.However, because of the existing difficult position of local SOEs, different opinions on the enforcement of MBO, as well as incompleteness of local market economy, it is hard to put MBO into practice standard.Consequently, according to above situation and the experience of other localities, the article bring forth some proposal to improve and perfect the conditions of the application of MBO in Xi'an SOE.