Chengdu Land Reclamation-owned Small Business Stock Cooperative System Reform

In 1990s, to meet the demands of China's economic reformation and to activate medium and small state-owned enterprises (SOEs), China undertook various patterns of reformation in these enterprises for the purpose of establishing modern corporation institution. Promoted by political orientation and economic benefits, and through many years'practice, the Stock Cooperation System (SCS) has become the major pattern of the reformation of medium and small SOEs.In 1996, after Chengdu municipal government made the"Decision for Facilitating Reformation in Small SOEs", Chengdu Agriculture and Cultivation Bureau (CACB) started to reform the small SOEs affiliated to CACB. By the end of 2000, 13 small SOEs affiliated to CACB completed the reformation toward SCS. After the reformation, these enterprises got out of the embarrassment of living on financial subsidies; they got into the channel of self-development; they realized the reformation objectives of"clear property, multi-form investment, employee shareholding, and democratic decision-making". All the transformation constructed a platform toward the modern corporation institution.At present, the reorganized small SOEs affiliated to CACB have stepped into a phase of a halt from prosperous developing period. The developing direction of these enterprises has become the most practical problem. Therefore, the thesis utilizes the method of combining theory with the practice, researches the reformation practice of small SOEs affiliated to CACB toward SCS, and discusses the new ways of development for these enterprises. The main contents are as follows:Based on examination from various aspects of the reformation practice of small SOEs affiliated to CACB toward SCS, the thesis objectively evaluates the results of reformation in the reorganized enterprises from the aspects of change in financial situation, impacts on employees, governance structure toward the modern corporation institution, complete change in motivation mechanism, and employment stability. The thesis puts forth that SCS played a positive role at the moment in the reformation of...