By Ma Jun, Research Team on “State-Owned Capital Investing and Operating Companies”, Enterprise Research Institute, DRC

Research Report, No. 42, 2020 (Total 5786) 2020-3-18

Abstract: Central-governmental enterprises have carried out pilot reforms on three batches of state-owned capital investing and operating companies targeting at reorganization. Although conditions and progresses of the pilot companies vary, generally speaking, impressive results have been achieved in pilot companies and goals of the reform have gradually become clear. Some of the companies have accumulated important experiences, while at the same time, it is worth noting that further efforts are needed in some key areas to strengthen the reform and exploration. In the next stage, we particularly need to intensify the reform of the following four aspects. First, we need to further clarify the mission of state-owned capital investing and operating companies. The major fields and proportions of future state-owned capital investment need to be defined at state level, and state-owned capital investing and operating companies should play the major role in adjusting state-owned capital investment layout based on the market. Second, the relationship between the government and enterprises need to be further sorted out. Related governmental departments should make more efforts in power delegation and authorization so as to give full play to the role of the specialized platforms of state-owned capital investing and operating companies. Third, the organization transformation and capacity building of pilot companies should be enhanced. Restructuring the organization of their group headquarters, reshaping their functions and fostering their capability of capital management in an overall manner should be taken as the top priority. Fourth, the establishment of new capital management models in state-owned capital investing and operating companies need to be accelerated. On the basis of promoting the mix-ownership reform of subordinate companies and improving corporate governance, administrative red tapes and interference need to be reduced so that these companies can actively participate in corporate governance.

Key words: state-owned capital investing and operating company, reform, pilot program