The Research Of Shichang Railroad Company’s Financial Regulatory System In Entrusted Management Business

There are many new changes in the structure of railway industry after China’s reform and opening up, the most obvious is that joint venture railways industry as a new force obtained a rapid development. Joint venture railway company is organized by the former ministry of railways, local governments, enterprises, or other investors, its purpose is to promote local economic development and improve the government’s public service function. Joint venture railway company at present stage has kinds of modes simultaneously:the traditional stations autonomous management pattern, divisional system proprietary management mode and entrust the operation management mode. Entrusted operations management mode as an effective innovation mode in the part of the joint venture railway company got a rapid promotion.Entrusted operations management mode refers to the joint venture railway company divides management into asset management and production management as two parts, the production management part entrusts to railway administration(parent company of the joint venture railway company) for specialized operation. It’s not hard to find that the entrust management makes the original property owners (parent company of the joint venture railway company) into real business operators. Establishing an effective financial regulation system to ensure the custody business operate smoothly is particularly important under the condition of coincidence of owner and operator.Shichang railway joint venture company is the research object in this paper. With the analysis of present situation of Shichang railway company’s entrusted management business, i find that financial regulatory system exists many problems in the aspects of business operation and management, budget management, asset management and performance evaluation. The reason leading the failure of custody business generally includes three aspects:financial regulatory framework is not reasonable, financial regulation content is not complete, security system is not perfect. In order to solve the problems existing in the present financial regulatory of custody business, optimization measures are given from three dimensions in this paper:adjust the structure of corporate governance, optimize the core content of financial regulatory system, and consummating the system of financial regulation. This article boldly puts forward to set up the "joint venture railway asset management company" as the new legal person subject to perfect the group managed financial supervision system. There are very big improvement in the administrative supervision effectiveness, flexibility and fairness compared with the original financial regulatory system after the innovation of the financial regulatory system. In this paper, the research of the financial regulatory system in Shichang railway company not only provides concrete approaches for improving the company’s management, but also can provide some reference for the reform of Chinese railway.