Research On The Influence Mechanism And Impact Of Private Enterprises’ Introducing State Owned Assets

For a long time,the phenomenon of "difficult" and "expensive" financing has been prevalent among private enterprises in China.In 2018,the economic situation was poor and the stock market was on the downswing,which led to the frequent occurrence of equity pledges in listed companies in China.In order to rescue private enterprises and stabilise the stock market,relevant state departments have launched support measures such as relief funds to bail out private enterprises.However,due to its short start,research in this area is still relatively scarce and practical experience is also lacking.On this basis,this paper examines relief funds with a view to make relief fund play a better role and helping private enterprises to embark on a healthier and more stable path of development.This paper first summarises the motivation for bailout,the mode of operation and the effectiveness of bailout funds by reviewing the current state of research by scholars at home and abroad,and lays a good theoretical foundation for the case studies that follow.This paper analyses the reasons for the introduction of state-funded bailout funds of Orient Landscape,and finds that the reasons are related to Orient Landscape’s early investment in PPP projects,its unreasonable financing structure and the risk of equity pledging,and the other reason is to seek synergies and achieve long-term development with Equity bail-out.Then explores the market response and financial performance of Orient Landscape after the bailout fund entered the company,and demonstrates the influence path of the bailout fund.The analysis ultimately draws the following conclusions: firstly,there is a clear tendency for state capital to bail out private enterprises whose main business fits with macro policies;secondly,the introduction of state capital can have an impact on corporate performance by improving the financing environment,optimising the shareholding structure and adjusting the strategic layout.The effect of the bailout fund is reflected in the positive market response,with the financial aspect reflected in lower financing costs,enhanced debt servicing capacity and higher turnover of accounts receivable,but no significant improvement in profitability for the time being.With the introduction of more bailout policies,more and more companies will receive bailout or participate in bailout.Therefore,this paper summarises the experience of Orient Landscape in introducing the Chaoyang State Capital bailout and makes relevant suggestions to better achieve the bailout effect,enriching the case study of China’s bailout fund.It also serves as a cautionary tale for other private listed companies in raising funds and daily management through equity pledges,and provides new ideas and directions for listed companies in China to address equity pledge risks and stabilise control rights.