Dissertation > Economic > Fiscal, monetary > Finance, banking > China's financial,banking > Financial market

Discussion of State-owned Stock Reduction

Author ShengYun
Tutor WuJingYe
School Southwest Jiaotong University
Course Business Administration
Keywords State-owned shares SOE reform Non-tradable shares Floating Pricing Gradual reduction
CLC F832.5
Type Master's thesis
Year 2002
Downloads 79
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Last year, the stock market continued to decline raises questions state-owned shares widespread concern in policy state-owned shares will be the impact to China's stock market in 2002, as well as the future development of an important watershed. State-owned shares are securities market standardization, joint-stock reform of state-owned enterprises deepening strategic adjustment of state-owned economic layout and perfect the social security system, a meeting point for research on this issue has a strong practical significance. This paper first describes the current situation and development of China's stock market opportunities, trying to go against the background of China's stock market holdings of policy failure. Discusses the main features of China's stock market, which has developed rapidly in the increasingly important position in the national economy, but the option settings are not standardized, is divided into tradable and non-tradable shares and non-tradable shares (mainly state-owned shares) occupy most, thus derived from a series of shortcomings. Primarily the interests of large shareholders and tradable shareholders mechanisms fragmented, become major shareholders of listed companies misappropriating tools; stock market liquidity and earnings are distorted, remains high; optimize resource allocation functions are hampered greatly influenced public companies and sustainable development of capital markets. After joining the WTO norms and standards we are aware of the urgency and necessity, while China's sustained and rapid economic development, and nearly eight trillion yuan of household savings balance of standardization and development provides an excellent opportunity. Then analyzes the reduction of policy failure on two levels causes. Direct cause of reduction of prices too high, lack of impartiality and Reduction Measures palliatives, non-tradable shares more less more meaning lack of reform. But produces this bias is deep-seated reasons behind the reform of state-owned enterprises - joint-stock reform did not fundamentally solve the SOE witch hunt, unclear property rights, the absence of owners of the three illnesses, the government in the social management functions and functional asset owners confuse with \Property rights of state-owned equity inherent unclear absence of owners but also makes the implementation of the reduction ineffective constraints many. Through the above analysis, the paper owned shares issues were discussed repositioning, state-owned shares will be positioned as a national economic development and an important part of the reform, to achieve the key objectives of the reform is to solve the non-tradable shares throughout the entire stock market circulation problems. Seven categories of existing programs through comparative analysis, analysis of their characteristics, type of program that the seven biggest flaw in common - the lack of a scientific pricing. This article presents a floating rate pricing progressive reduction programs, the use of market price search function to find a fair price acceptable to all parties, and proposed the establishment of speed estimation model reduction methods, and relevant policy recommendations. Finally reorganization of existing state-owned equity management system, discusses the reasons for restructuring - effectively separate government from enterprises, solve unclear property rights, the absence of owners drawbacks, rationalize the system, in order to completely solve the problem of state-owned shares may be provided, as well as restructuring methods and ideas with progressive reduction of the reason.

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