State-controlled Firms Independence Study

Reform of State-owned enterprises, economic reform in China plays an important role in the history of the area. Difficulties of State-owned enterprise reform, disputes many, many scholars and policymakers at a loss. This is not only because many interests involved in State-owned enterprises, but also because according to background characteristics required to reform and adjust institutional arrangements in order to adapt to the current economic development situation. China’s reform of State-owned enterprise was founded in 1978, the experience during the "right to make profits" and "establish a modern enterprise system," "unify all, classification title" stage, recently kicked off the start of "mixed ownership reform", each stage is of great significance. The State Council issued the CPC Central Committee and the State Council on deepening the reform of State-owned enterprise guidance, mixed ownership reform of State-owned enterprises several of the specific reform measures to guide observations on October the 24 th, 2015. Includes "classification reform of State-owned enterprises", "improve the modern enterprise system" and "perfect the management system of State-owned assets," "developing mixed ownership economy", to "strengthen the internal and external oversight to prevent the loss of State assets", "to strengthen and improve the party’s leadership over State-owned enterprises", develop direction for reform of State-owned enterprises, made a more detailed opinion.In the last 30 years, while State-owned enterprises in China has made remarkable achievements, explore a more successful experience. But on the current operating situation of State-owned enterprises, there is still much to be desired, so often criticized by the scholars and the public. For example, some years ago we have been discussing "the separation" problems to this day still no institutional arrangements to resolve. Always bear the name of monopoly State-owned enterprises, is accused of using the advantages of national background, undermining the fairness of the competition. The operational efficiency of State-owned enterprises has also been questioned by people. In response to these questions and doubts, most scholars have noted, if you want to make the reform of State-owned enterprises productive and excellent experience in foreign countries is also needed for reference and learning. The successful experience of State-owned enterprises operating in various countries, most people believe that Singapore’s State-owned assets operation mode, Temasek Holdings Company, is the most worthy of our study. And not just because Temasek’s high efficiency of operating state-owned assets, but also to Singapore this country located in Southeast Asia, ethnic Chinese majority, many ideas and cultural similarities with the Chinese. Therefore, in China a few years ago began setting up state-owned assets operation company, and gradually found a suitable new model of State-owned assets operation. The purpose of writing this article, is to go into Temasek model, found that we learn from successful experiences and, ultimately, to the State-owned asset management company model modes.The first chapter of this paper describes the background and significance of article writing. To solve the problem in this article, the State holding company(that is, previously State-owned asset management company) in the operational independence of State-owned assets. In the second chapter, then carefully analyzes the important issues in the course of State-owned enterprises. Included is able to reduce administrative intervention by the Government, in accordance with the decision-making body could form important business decisions; from the personnel aspects, reduce government interference in the company; do you have appropriate incentives and regulatory mechanisms, allows the company to operate independently of the case, to efficient and safe operating state-owned assets, and so on. In the third chapter, introduced Singapore Temasek Holdings the historical background, achievements, the role of the Government, holding the company’s governance structure, company executives the incentive and regulatory related issues. Finally, the third chapter is summarized on the basis of the previous text, trying to reconstruct the system of State holding company, for example, repositioning the role of the Government, directors of high system suggestions, as well as executives of incentive and supervision mechanism of building proposals. I hope that through the study of Temasek’s mode, can provide useful experience for building China’s reform of State-owned enterprises system.