China's State-owned Assets Transfer Pricing Auction Mechanism

As everyone knows, the state-run assets of our country are in a very large scale. The only way of economic system reform in our country is to reform these enormous state-run assets. The great task of promoting economic system reform that the 16th National Congress of Communist Party of China put forward was to continue adjusting overall arrangement and structure of the state-owned economy, and to reform the management system of state-run assets.Generally looking, the strategic adjustment of the state-owned economy mainly includes the contents of two levels: to shrink the battle line on the macroscopic, strengthen the focal point, and optimize overall arrangement and structure of the state-owned economy; on the microcosmic level, to advance the transition of operating mechanism of state-owned enterprises through realizing the structure of state-owned enterprise stock right pluralism. First, we should strength the state-owned economy in some industries and retreat from other industries, that's to say the state-owned economy will just do some necessary things but leave other things undone. To withdraw the state-run capital from the competitive field, and then concentrate it on those which must be hold by country, especially in natural monopolistic department, social public service department , strategic department and other department concerning the lifelines of the national economy. Second, to impel state-owned enterprise shift to the key field, construct the firm foundation of our national economy. In this course, how to make state-run assets flow while avoiding the state-run assets loss has become the topic that both the theory and practice circle care about at present. During the process, there must be a considerable amount of state-run assets to be sold in the market. Introducing auction mechanism to the property right trading market of state-run assets and realizing the transfer of state-run assets through auctioning, have great theory meaning and practical value which is an effective market-based pricing...