A Study On State-Owned Financial Assets

As a socialist country, China has large-scale state-owned economy, which plays a vital role in the national economic system. With the development of the virtual economy, the scale of the state-owned capital in the financial industry is also expanding and has become an important part of state-owned assets. Massive state-owned financial assets require the management system construction to be improved; managerial level to be enhanced. Not regulated in the unified management of the SASAC system, state-owned financial assets is still in multiple management mode in the past years. Not only do they lack a unified investor representative, it is also difficult to determine the direction of development. As a matter of fact, the current financial state-owned asset management is in a complex state in which multiple modes co-exist. The situation has raised numerous questions to the management of China’s state-owned financial assets and the development of state-owned financial enterprises, which is directly relevant to the future development of China’s social economy. Therefore, it is essential for us give sufficient attention to and do abundant research on the construction of China’s financial state-owned assets management system. Firstly, I will start with China’s status quo of state-owned financial asset management and analyze the advantages and disadvantages of the current system and the needs for improvement and perfection. Secondly, I will summarize the experiences in the field of state-owned financial assets management in countries such as France, Italy and Singapore and propose four creative models regarding state-owned financials assets management combined with China’s current situation. Thirdly, I will conduct a multi-dimension horizontal comparison among these four models based on their organizational structures and operational modes and analyze the pros and cons of each candidate models. After a comprehensive comparison of a variety of methods, I believe that the Central Huijin model which has already begun to take shape has superiority to some extent. Though current management methods are antiquated and ineffective, they still have the potential to be evolved into mature three-level management mode through appropriate reforms which will tremendously contribute to the management of state-owned financial assets.Nevertheless, we must recognize that the essence of China’s construction of state-owned financial assets management does not lie in the choice of management framework or regulator but in the following three transformations:Firstly, we must transform our management concepts to avoid excessive administrative intervention, imply highly market-oriented management methods and respect the autonomy of enterprises as well as basic rules of the market; Secondly, we must separate the investors and the regulators so that the function of supervision can be fully achieved; Finally we have to admit that the trend of mixed business of financial industry is inevitable and regulators should consider the implementation of mixed supervision to keep up with the times. Through the three conceptional transformations mentioned above and in accordance with the current administration institution setup and the direction of organizational change, we can scheme out state-owned financial assets management system which matches China’s social and economic development, include the massive state-owned financial assets into equitable management and guide China’s financial industry while maintaining and increasing its value.