Research On The Motivation And Influence Of Gree Electric Appliances’ Introducing Strategic Investors Under The Background Of Mixed Ownership Reform

Mixed-ownership reform has accelerated in China since the Third Plenary Session of the 18 th CPC Central Committee encouraged the active development of a mixed ownership economy and carried out SOE reform.Afterwards,the State Council listed the fourth batch of state-owned enterprises which were allowed to do mixed-ownership reformation and encouraged local state-owned enterprises and state-owned enterprises whose main business was competitive to do this reformation.This paper focus Gree Electric Appliances(GEA)to study the motivation and the effects of the introduction of strategic investors during the mixed-ownership reformation.As a state-owned enterprise in competitive field,GEA had been controlled by Zhuhai SASAC after listed since 1996.In 2019,GEA began to reform by introducing a strategic investor,Hillhouse Capital.The transfer changes control of GEA,with SASAC losing its position as the largest shareholder.In addition,GEA’s reformation plan was extremely innovative: the management in GEA established Gezhen Investment to participate in the reformation.Therefore,the listed company finally became a model with no controlling shareholder and actual controller.This paper mainly analyzes the case of GEA’s introduction of strategic investors through three parts.Firstly,the design of the entire plan of the mixed-ownership reformation,especially the integration of control rights of enterprises after the reformation;Secondly,the motivation of introduction of strategic investors includes the internal and external motivation;Thirdly,the results of the reformation after the reformation,which mainly considers the reply of market,corporate governance,and the influences on stakeholders.Meanwhile,this paper is not only just limited in cases,but also further analyzes the possible obstacles which are notable when introducing strategic investors into state-owned enterprises during mixed-ownership reformation and provide suggestions for mixed-ownership reformation for state-owned enterprises which are trying to introduce strategic investors.