By Xiang Anbo, Enterprise Research Institute, DRC

Research Report No. 122, 2017 (Total. 5197) 2017-9-22

Abstract: Shandong province has gained some experience in promoting mixed ownership reform. Their experience indicates that under the mixed ownership reform, the province has chosen for pilot practice some enterprises with second-level qualification certificate and some large state-owned-enterprises (SOEs). For such kind of mixed ownership enterprises, the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC) only kept them on record instead of making reviewal and approval. Trials were focused on first-level enterprise and classified policy measures relating to mixed ownership reform were implemented to different kind of enterprises according to their specific conditions. The province gave first priority to introducing strategic investors, paid attention to the protection of the rights and interests of small and medium-sized shareholders while bringing into play their functions, and the experience of model enterprises was introduced to other businesses in the province. At the same time, the relevant departments and enterprises also collected some typical problems for research. Based on the survey results, this paper puts forward the following policy options. We need to reconstruct the relations between state capital offices and mixed ownership enterprises; flesh out the relevant supporting policies to further promote the reform of mixed ownership; provide more favorable conditions for and broaden the scope covering enterprises implementing employee stock ownership plans (ESOP); terminate the employees “identity exchange” practice in state-owned enterprises and protect the legitimate rights and interests of workers in accordance with the “Labor Contract Law”; establish and improve the fault tolerance mechanism to resolve the concerns of reformers, promote the market-based system for the selection and engagement of managers in the mixed ownership enterprises and implement the system of professional managers.

Key words: mixed ownership, state-owned enterprise reform, employee stock ownership plans