A Studyon Reform Question Of Jingwei Group Company

Recently, the reform of Chinese state-owned enterprises(SOE) had already produced some effect. But it still has many drawbacks. With the development of Chinese SOE, how to reduce the loss, and how to reform effectively become the major problem for the SOE and government. And the mixed ownership enterprises will be a breakthrough of the SOE reform. This new arrangement of rights is benefit to the enterprises develops continuously and healthily, which is the premise of enterprises to adapt to the market and enhance competitiveness. After privatize, many SOE make a win-win situation, the increase of the national revenue, enterprise profits, dividend and the income of the employees.However, after more than 20 years of SOE reform, there have several methods that each one has advantages and disadvantages. How to select an appropriate solution is becoming to the priority to the SOE. A good plan can make the enterprise bigger and bigger; on the contrary, a bad deal will lead to death. Every enterprise has their unique properties. It is hard for them to find a single method to meet their actual situation. Therefore, many enterprises develop a suitable program, which combine a variety of methods, to make the reform succeed.This paper starts with a real case. It analyses the reform of Jingwei Group Company. It analyses the background, program, construction process, and results of the company's reform, in order to known the form that is benefit for SOE's reform. This program combines a variety of methods, such as employee stock ownership plan, dual class equity structure, management buy outs, and the introduction of external strategic investors, which avoid that “vote with their feet” in the methods of “one person, one vote”, and some investors seek short-term profits in the methods of “one share, one vote”. By analysis, it explores a good mode for SOE reform.