A Study On The Strategy Of Assets Reorganization Of State - Owned Listed Companies In Urban Construction

Reform of the economic system is considered as the key of the reform and opening-up policies of China. The State-Owned Enterprise (SOE) reform as the key link of the economic system restricting, is currently facing many problems. From the current policy and market perspective, the SOE reform will further speed up. The reform and opening-up of China will be significantly impacted by the promotion of the SOE reform, the comprehensive improvement of the SOE development mechanism, the acceleration of the strategic restructuring of the state-owned economy.With the acceleration of the SOE reform, the impact of the assets restructuring becomes more significant. The assets restructuring will lead to optimized allocation of resources, improved economic structure, and higher competency and profitability of the state-owned enterprises. In this paper we first described the coordination theory, the agency cost theory, the hubris hypothesis, the redistribution theory under market-oriented behavior, etc. in order to provide theoretical support on the feasibility and necessity of SOE assets restructuring. Secondly, taking Nanjing background as an example, we presented the current situation of the listed companies in Nanjing public utilities sector, the research on the development and needs of the urban public utilities construction and the proposed countermeasures, and the challenges and opportunities encountered by a listed company (AB) in the field of urban construction. Thirdly, by case study of AB’s assets restructuring, we addressed their assets restructuring analysis report and their successful experience. Finally, we mainly discussed the pros and cons during AB’s assets restructuring process, and provided proposals for AB to ensure a smooth and effective of the assets restructuring.Through our research on AB’s assets restructuring, we can reach the following three conclusions:First, the process of this assets restructuring provided a good reference and valuable experience to the future practice of deepening SOE reform and of establishing modern corporate system; Second, this assets restructuring will further help to improve AB’s efficiency on company’s operation and assets management, to optimize AB’s business layout as a listed company with prominent strategy on core business and extension of business scope, in order to preserve and to increase AB’s assets value as a state-owned enterprise; Third, despite the coexisting of risks and benefits in a short-term period, but from a long-term perspective, the assets restructuring will effectively improve the performance of the enterprise, and will have favorable and significant impact on the SOE reform process and the economic system reform in China. At the end, we summarized the whole study in this paper and our prospect as well.