Interpret | five major breakthrough in a new round of State-owned enterprise

Livelihood security recommendations for investors, companies can focus on local governance reform. Oriental IC data

Top design of the reform of State-owned enterprises--the guidelines on deepening the reform of State-owned enterprises (hereinafter referred to as the guidelines) was announced on September 13.

Starting from 2013 18 plenary session, State-owned enterprise reform entered the fourth stage dominated by perfect. The view was expressed that this round of reform and the reform of its State-owned enterprises rather than reform of State-owned assets. Because this core includes not only the reform of State owned enterprises reform of State-owned assets management system is also a new action.

From the overall structure, the guidance for a total of 8 chapters and 30 articles. Among them, the second to sixth chapter 20 contents related to the reform of key and key.

In turn, chapter classification supervision of State enterprises are the basis of this reform, chapter III perfect modern enterprise system is the direction of reform, is the fourth chapter of State-owned assets management system reform of institutional safeguards, the fifth chapter is an important way to develop mixed ownership economy, the sixth chapter, strengthen supervision and prevent the loss of State-owned assets is an important guarantee for reform.

If you look carefully to read the content of this article 20 of Chapter 6, which contains five major breakthroughs can be found, as well as a weakening. Interpret | five major breakthrough in a new round of State-owned enterprise reform and a weakened point

First, the classification of State-owned enterprise supervision system. Clearly the basis of classification is the State-owned enterprise reform, because only in the clear after the enterprise category to determine borders and apply the reform programme for reform.

Shanghai day strong consulting, General Manager Zhu Boshan surging news, said he thinks one of the biggest highlights of the guidance is that classification management from a central perspective, the overall plan is divided into two main categories: public enterprises and commercial enterprises, commercial enterprises can be broken down according to the main business field to compete for business class and function-specific classes.

More noteworthy is that "in accordance with the classification principles who paid who" classification authority to the place. There are 22 provinces and introduced a State-owned enterprise reform programme, of which 19 provinces defined the classification of State enterprises, this principle is equivalent to have introduced programmes of local government "endorsement", while giving the local next step more autonomy, all can be classified according to the actual situation of the enterprise, more conducive to promoting reform.

Second, the SASAC to "pipe capital". This is the improvement of the existing State-owned assets management system. Existing State-owned assets management system led by the SASAC, including "possession of assets, management, personnel and" SASAC is both "umpires" and "trainer" double identity.

Experts from State-owned enterprises, "said based on capital this is the reform of State-owned assets supervision system reform of State-owned enterprises plays for real, for the capital markets and the real economy impact is enormous. "

Minsheng securities, said this means that the State-owned assets management system is not a simple tinkering, but rather from "tube Affairs assets" to "Canal capital" change. Future direction of management system reform of State-owned assets is based on an internal "Huijin mode" with foreign "Temasek" model, the formation of independent referees and coaches to promote government functions to "pipe capital" change, so as to establish the guidelines mentioned by SASAC-owned capital operating and investment company operating three-layer management system in State-owned enterprises.

However, Zhu Boshan believes that revealed the guidance information is also hard to see State-owned departments at all levels will be significantly adjusted, future of State-owned assets management is still a lot of white space.

Third, the restructuring of Group companies as a whole. The guidance is presented for the first time the overall restructuring of the group. In the third chapter, referred to in the seventh, efforts to increase Group corporate reform, introduce investors diversify their ownership, vigorously promote the reform of State-owned enterprises listed, create the conditions to achieve the company's overall market.

Livelihood security analysis, the disadvantages of State-owned enterprises before a two-tier system is, after the central rate of the assets listed,, or historical burden of bad assets remain in the group, the group even took on a large number of retired workers ' pension problems. Under the pressure of huge expenses, the group will be eroded in various joint-stock companies (listed companies) profit. But according to the current state-owned enterprise reform, the next step will be the formation of capital operation in State-owned companies, to replace the existing group, became the shareholders of a corporation. Capital operation of capital operation in State-owned companies will be a wide range of platforms (similar to Temasek capital operation mode), no longer interfere with the company's "people" and "business."

Then the company go from here?

Enterprises Zhang Wenkui, Deputy Director of the Institute of development research center of the State Council, said he is concerned that the guidance clearly share reform should be extended to the group, to increase the intensity of reform at the group level, which is beyond his expectation.

Four, improve the modern enterprise system in State-owned enterprises. If the root does not change the management system of State-owned assets, the SOE's internal governance reforms destined to be dancing in shackles, State-owned enterprise into a strong independent market entities, is embodied in the guidelines throughout the reform orientation.

Of the guidance specific measures are mentioned, one is the implementation of autonomy of enterprises according to law. Matters of law should be based on business decision-making in enterprises; effective implementation and maintenance of the Board of Directors shall exercise a significant decision-making, selection and appointment, the salary distribution rights, safeguard the autonomy of operation Manager, without authorization no Department or institution shall not interfere.

II is advance company business joint-stock reform, active introduced various investors, achieved equity diversified, vigorously promoted State-owned enterprise restructuring listed; to advance Board construction for focus, sound company corporate governance structure; established enterprise led personnel classification layered management system, implementation career managers system, reasonable increased market selection proportion; support enterprise law independent decided internal distribution, implemented and socialist market phase adapted of enterprise pay distribution system,.

The caixin reported, the highlight was the first to suggest the guidance Corporation's overall restructuring and implementation of one person, one vote system of the Board.

Livelihood security recommendations for investors, companies can focus on local governance reform. First, market management mechanisms, resolve the boards useless state issue; the other is market-oriented personnel selection. Executives hired under different classifications and levels of implementation of selection, appointments, terms in different selection mechanisms, employee selection open market. Third, market-oriented incentives. Reforming salary system upgrade work, in appropriate areas to encourage equity incentives listed companies, encouraged by way of employee stock ownership to developing mixed ownership.

Five, is expected to state securities rates have greatly improved in the future. The guidance under section 30 of Ordinance No special instructions for specific regulations to promote State-owned assets in securitization, but there are a lot of regulations related to promote State-owned securities, expected future SOEs reforms will accelerate, possibly trimming the wave of mergers.

Is 5th pointed out that the industry is fully competitive in industry and business in the area of State-owned enterprises to introduce other capital to diversify their equity and promote the overall market.

Points out that in the second, 7th forward joint-stock reform, vigorously promote the reform of State-owned enterprises listed, creating conditions to achieve the group listed as a whole.

Three is the 14th State in the rational flow of capital allocation in support of corporate law compliance through a stock exchange, property transactions, capital markets, disposing of business assets at fair prices.

Analysis on livelihood securities, securities of varying degrees of State-owned enterprises, can be taken as the overall market, backdoor listing, reverse acquisition of different modes, such as rate of securities of the parent company. There are 22 provinces announced a programme of reform of State-owned enterprises, compared with the guidance to promote securitization of more active state-owned assets, increase the rate of State-owned assets has become one of the main objectives of the reform of State-owned assets. There are 12 provinces announced a quantitative goal of State-owned stock in the next 5 years rate of State-owned stock has greatly improved, and brought to market investment opportunities.

Stronger better and bigger goals under the guidance of key at the central level of consolidation and restructuring of State-owned enterprises. The guidelines referred to in chapters dedicated to developing mixed ownership economy, but before you promote and 18 session of "positive developments" in reference to compare, has weakened, primarily emphasized the mixed ownership does not mean privatisation, but for strong do big state-owned enterprises. The future will avoid the loss of State assets, and on the basis of promoting the preservation and appreciation of State-owned, from the perspective of strategic investment into social capital. "In terms of developing mixed ownership, will adhere to the application by using policy, trade policy, appropriate independence alone, suitable for control is control, and participation, no lang with, not full coverage, no timetable, and matured into a. "

Zhu Boshan also believes that, in the development of the guidance section of the mixed ownership economy to introduce "non-State-owned capital" involved in State-owned enterprise reform, replacing the previous formulas such as social capital, this tone is not meaningful.

Chinese entrepreneur Li Jin, Chief Analyst of the Institute are also surging news that, in developing mixed ownership economy on the discussion, the guidelines caution.

Overall livelihood securities analysis, this round of reform of State-owned enterprises face more complex problems than before, but also most of the market expected. On one hand, now State-owned enterprises and enterprises, inefficient, high debt problems more prominent, only in order to find a way out. The other hand, the top design and coordination of reform stronger than ever, following the strength and breadth of reform are worth looking forward to.