Financial Risk Analysis Of China Unicom's Mixed Ownership Reform

Throughout the development process of China's state-owned enterprises,it can be found that some central enterprises and local state-owned enterprises have continued to grow through reform and opening up,but others are faced with problems such as insufficient competitiveness and innovation,low operational efficiency and imperfect corporate governance structure.In order to improve the operation of state-owned enterprises,enhance the competitiveness of state-owned enterprises,and promote the preservation and appreciation of state-owned assets,the State Council issued the "Guiding Opinions on Deepening the Reform of State-Owned Enterprises" in August 2015,clearly stating that the development of a mixed-ownership economy should encourage non-state-owned capital investment entities to participate in the restructuring and operation of state-owned enterprises through various means such as acquisition of equity,capital contribution,equity swap,and subscription of convertible bonds.In addition,General Secretary Xi stated in the report of the 19 th National Congress that it is necessary to resolutely fight the three major battles,one of which is to prevent and resolve major risks,and financial risks as an important type of risk are great significance.Therefore,it is value to study the financial risks in the mixed reform of stateowned enterprises,it not only has guiding significance for China's future mixed reform practice,but also meets the requirements of the General Secretary's three major battles.The introduction of strategic investors as one of the important ways for the new round of stateowned enterprise mixed ownership reform is of great significance to deepening the reform of state-owned enterprises.This paper will start from the background of the reform of stateowned enterprise mixed ownership,based on the research of related literature,adopts the case study method,selects China Unicom as an example,and focuses on the financial risks associated with the introduction of strategic investors in China Unicom's mixed ownership reform process.The article begins with the background of China Unicom's mixed ownership reform,mainly introduces the reasons,environment,process and main content of this mixed reform.Secondly,from the perspective of introducing strategic investors,the whole mixed improvement process is divided into two stages-before the implementation of mixed reform and after the implementation of mixed reform-analyzes the financial risks existing in these two stages.Among them,the financial risks before the implementation of mixed reform mainly include strategic investors' choice risks and value assessment risks;the financial risks after the implementation of mixed reforms mainly include financial management integration risks,control transfer risks and financial speculation risks.Then,the results of the case analysis are briefly described.It is found that China Unicom has chosen the appropriate strategic investors;although the pricing of non-public offerings in this mixed ownership reform is reasonable,the choice of pricing method needs to be improved;equity structure design and board arrangement are extremely ingenious,avoiding the transfer of company control.After the mixed reform,China Unicom and various strategic investors have achieved excellent financial management integration and the company's performance has improved.But it is important to note that strategic investors may become financial speculators.Finally,summarizing the experience and inspiration of China Unicom's reform,in order to bring some help to China's future state-owned enterprise mixed ownership reform.