The introduction of the preferred stock model to promote the reform of state-owned assets management will not only strengthen the dividend rights of state-owned enterprises and make their budgets rigidly constrained, but also help separate the government and enterprises, promote the real marketization of state-owned enterprises and the construction of a modern enterprise system. Last week, Wen Zongyu, director of the State-owned Economic Research Office of the Institute of Finance of the Ministry of Finance, said that the reform of state-owned enterprises will be introduced at the end of this year or early next year. Among the various versions of the reform of state-owned enterprises currently circulating in the market, the reform of the state-owned asset management system is undoubtedly a highlight that can be brought into play. Since the focus of China’s reforms has shifted from rural to urban areas, the reform of state-owned enterprises has always been the highlight: from fiscal allocation to loans to remove the big pot rice of government and enterprises, to the limited mechanism innovation of the factory director and manager responsibility system, to the control of large and small and state-owned enterprises The scope and scale of strategic industries related to the national economy and the people’s livelihood have converged. State-owned enterprises have established modern corporate systems and restructured and listed, and then explored the management of state-owned assets after the establishment of the The reform of the auxiliary separation, etc., every step is bloody, every step is broken in path dependence, and even becomes 'anticlimax'. A typical example is the separation of main and auxiliary state-owned enterprises. With the actual offensive of state-owned enterprises so far, the reform vision of separating main and auxiliary and regulating the scope of state-owned enterprises' operation has penetrated the repetitive and repeated reforms of state-owned enterprises. In fact, combing through the experience of state-owned enterprise reform, it is not difficult to find that the core proposition of state-owned enterprise reform is actually the management of state-owned assets. Unlike the private sector with clear property rights, state-owned enterprises not only follow the principal-agent rules of separation of ownership and management rights, but also have principal-agent risks. At present, neither the SASAC, China Investment Corporation, Huijin, etc., are the ultimate owners of state-owned assets. It is the agent of ownership, and the entrusted-agent chain is very long, and each link faces agency risks of different characteristics. This is precisely the problem of excessively high marginal costs of state-owned enterprises and soft budget constraints. Another question is, what ownership form should state-owned assets use to regulate soft budget constraints? If state-owned assets are characterized as a special kind of debt assets, it is more helpful to alleviate the entrusted agency risk caused by the false ownership, because the debt is an asset that needs to be repaid, that is, the management of the state-owned enterprise must pay for it every year. The owner of state-owned assets pays interest. However, it is not easy to understand and accept state-owned asset rights as a special asset with debt properties, because the debtorization of state-owned assets means that the SASAC loses its control and direct management power over state-owned assets. The SASAC is obviously unwilling to play a purely financial investor role. To this end, the compromise plan is to appropriately use preferred shares to reshape the state-owned asset management system and deepen the reform of state-owned enterprises. Although preferred stock can be used as an indefinite bond, people habitually interpret it as a partial equity asset, and the continuous evolution of preferred stocks in developed markets has led to the creation of a valve
that can trigger voting rights. The new product, that is, facing any decision that may involve the interests of preferred shareholders, such as major asset changes, preferred shareholders have the right to express their opinions. At the same time, the preferred stock market already has the right to accumulate dividends, that is, when a fixed dividend contract is agreed upon, if the company cannot pay dividends to preferred shareholders in a certain fiscal year, the dividends of that year will be accumulated to the next year. Obviously, the introduction of the preferred stock model to promote the reform of state-owned assets management will not only strengthen the dividend rights of state-owned enterprises and make their budgets hardly constrained, but also help separate the government and enterprises, promote the real marketization of state-owned enterprises and the construction of a modern enterprise system. Of course, the state-owned asset management department can also explore the hierarchical shareholding structure of A and B shares, so as to share the benefits of state-owned enterprises after the real marketization without completely giving up the management and operation rights of state-owned assets.
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