By Xiang Anbo, Enterprise Research Institute, DRC & Wang Nian, the People’s Insurance Company (Group) of China Limited

Research Report, No.52, 2019 (Total 5552) 2019-4-12

Abstract: Since the convention of the 18th CPC National Congress, China has made continued efforts to promote merger and reorganization of state-owned enterprises (SOEs) and has gained rich experience. However, the merger and reorganization of SOEs still face some problems such as administrative dominance, excessive emphasis on reorganization while neglecting integration, non-consistent directives and policies and irregular mergers and acquisitions overseas. It is believed that the merger and acquisition of SOEs at present need to be adjusted, changing the focus from reorganization to integration, and from a scale-centered mode to an efficiency-oriented one. Efforts need to be made to control the frequency appropriately, and the future work need to, on the basis of what have been achieved, improve the quality and integration effect of SOEs restructuring and realize the transformation from quantity growth to quality improvement and upgrading. The relevant government departments need to improve the institutional mechanism, give play to the positive role of the leading organizations in providing service to SOEs merger and reorganization, adjust work priorities with appropriate approaches, establish a shareholder coordination mechanism, and enhance the government role in regulation work. In addition, they need to promote substantive integration in a timely manner after the reorganization of SOEs, guide SOEs mergers and acquisitions overseas in light of given rules and perfect the merger and reorganization of central government-owned companies so as to afford useful reference for merger and acquisition work across the country.

Key words: state-owned enterprises (SOEs), merger and reorganization, guidance, standardized rules