A Case Study Of COFCO Capital’s Mixed Ownership Reform

The Third Plenary Session of the 18 th CPC Central Committee put forward the active development of mixed ownership economy,and the 19 th Congress clearly pointed out the need to deepen the reform of state-owned enterprises,develop mixed ownership economy,and build internationally competitive,world-class companies.At the same time,the corresponding supporting policies have been introduced one after another,and the mixed ownership reform has been carried out rapidly with the help of various policies and the power of all parties.2016 onwards,the SASAC has carried out the pilot mixed ownership reform of SOEs,and has launched four batches of 208 pilots one after another.At present,nearly 100 pilots nationwide have completed the main tasks of introducing strategic investors,improving the shareholding structure and changing the management system,and have introduced more than 200 billion yuan of external capital.Nearly 60 pilot enterprises have implemented or will implement incentive plans such as employee stock ownership,equity incentives and dividend incentives.2021 in the first half of the year,more than 150 central enterprises have implemented mixed ownership reform,and more than 90 billion yuan of social capital has been introduced through mixed ownership reform around the country.The mixed ownership reform of SOEs is a hot spot in the capital market and a difficult one.Therefore,the experiences of SOEs that have carried out mixed ownership reforms are researchable.In 2017,COFCO Capital was included in the pilot enterprises of state-owned enterprise reform of the Development and Reform Commission,and its mixed reform introduced a large amount of money,focusing on improving market-oriented mechanisms and sound incentive and constraint mechanisms,and the mixed reform case is relatively typical and has a demonstration effect.Based on this,this paper selects COFCO Capital’s mixed ownership reform case for specific study,analyzes the motives and methods of its mixed reform,the results achieved after the reform and the corresponding mechanism,and draws conclusions and insights.Firstly,we summarize the research background and significance of the case study,organize the relevant literature on the motivation,mode and economic consequences of the mixed reform of stateowned enterprises,and introduce the main research ideas and research methods of the case study.Second,the concept and development history of mixed ownership reform of state-owned enterprises,the motives and modes are analyzed theoretically,and the theoretical basis of the case study is elaborated.Once again,the case study of COFCO Capital’s mixed ownership reform is introduced,briefly stating the basic situation of the company and studying its motivations for carrying out mixed ownership reform,mainly: to build an investment holding and listing platform,to help the group company enhance its international competitiveness,to improve its own competitiveness and risk resistance and to broaden financing channels.The way of COFCO Capital’s mixed reform is to introduce strategic investors and restructure the listing of Centaline Special Steel by shell.On the one hand,the paper analyzes the profitability,growth and solvency of COFCO Capital before and after the mixed ownership reform from a financial perspective,and also analyzes the market effects after the mixed reform.On the other hand,from a non-financial perspective,the paper explains that the mixed reform can activate the whole industrial chain of the group company and strengthen the strength of each business segment.At the same time,it is analyzed that the mechanism of the effectiveness of the mixed reform of COFCO Capital is to optimize the shareholding structure and governance mechanism,strengthen the financial technology innovation and enhance the risk management capability.Finally,the case is combined to draw corresponding conclusions and form insights on how to better implement the mixed ownership reform in state-owned enterprises.Through the above analysis,this article draws the following conclusions:(1)Mixed reform improves the company’s financial performance;(2)Mixed reform helps the company’s market performance;(3)The improvement of internal governance mechanisms strengthens governance efficiency;(4)Mixed reform can optimize the group industry chain.On this basis,this article provides some enlightenment for state-owned enterprises to carry out mixed ownership reform:(1)The mixed reform of state-owned enterprises should be adapted to local conditions and the appropriate method should be selected;(2)Proper selection of strategic investors;(3)The key to mixed ownership reform is to reform the system.