The State-owned Assets And Its Operating Mode

With the deepening reform of State-owned Assets (SA), some economic actions are frequently used, such as reconstruction, M&A, selling and transferring to others. What's more, there initially developed a proper adjusting system for state-owned economy. During this process, however, the losses of state-owned assets and inefficient operating problems were not basically solved. It's estimated that, in China, RMB100 million to 300 million of SA is lost everyday, namely, RMB 30 billion annually. How to build an effective system to manage, supervise and operate our SA, so as to preserve and appreciate State-owned Assets Value (SAV) and avoid its losses, has been a big issue that we now have to face in the way to reform State-owned Enterprises (SE). In this paper, I first analyze the present situation of SA. In light of the reform and management experience of western countries, I point out some mistakes that we usually make in our current reform of SE, state which fields SA should get into or get out of, and to what an extent it should go ahead or quit, explain my own opinion on how State-owned Assets Agency (SAA), State-owned Assets Operating Corporation (SAOC) and State-owned Enterprise (SE) work together closely, take their own responsibilities as well as control each other to protect the legal right of the state-owned investors. Then, I make a research and discussion on how our SE.abandon the old operating pattern and build a new and high efficient one. The paper has four parts as follows:Part One: General analysis of SA, mainly on its definition, grow-up background, type, function, present situation to give a whole picture of SA.Part Two: Analysis of western countries' management and reform measures on SA, mainly on the role of western state-owned enterprises, SE's proportion to GNP, its operating lines and profits, the responsibility division between government and enterprises. Also, I make a detailed introduction of SE reforms in Sweden and France. I hope we can learn a lot from the comparison.Part Three: Analysis of some mistakes that we usually make in preserving and appreciating SAV, which is the foundation for us to correct and put forward new reform measures.Part Four: Analysis of the way to preserve and appreciate SAV, and how to choose the right operating pattern in China. Firstly, according to different targets and value orientations, SA should be reformed differently, and get into as well as get out in various fields and industries. For examples, as for some SA in the important sectors, we should take the operating power reform as well as the ownership reform. As for other SA in the common competitive sectors, the government should quit ownership strategically. Secondly, I state emphatically on the operating pattern "SAA-SAOC-SE" which has been carried on at present.