to be fully implemented, the reform of
state-owned enterprises is difficult to implement.
Reform involves defining the responsibility of
state-owned asset administrative departments, the
division of labour between government departments, and the government’s authorisation to
delegate power to state-owned enterprises.
Fourth, mixed ownership reform is difficult to
implement. The reform pilot for mixed ownership
of state-owned energy enterprises involves second- and third-tier non-core subsidiaries and is
difficult to roll out at scale. The mixed ownership
reform aims primarily to make state-owned capital
open to private capital, creating a mix of
state-owned and private capital. Such a mix is not
simply adding or subtracting capital but integrating different governance mechanisms. Private
enterprise might reject the capital management
system and mechanisms of state-owned enterprises, while state-owned enterprises might not
accept the management system of private enterprise. As things stand, institutional integration is
the biggest obstacle. Questions such as “Which
businesses should be open to private capital?” and
“How should state-owned assets be valued and
priced?” are still unanswered. The businesses
favoured by private enterprise are not necessarily
open to them, while those open to them are not
necessarily attractive to them. The asset prices,
which are based on the government policy of
preserving and appreciating state-owned assets,
are likely to be higher than the expectations of
private capital. These are the real problems
underlying mixed ownership reform.
Open Access This chapter is licensed under the terms of
the Creative Commons Attribution 4.0 International
License
(http://creativecommons.org/licenses/by/4.0/),
which permits use, sharing, adaptation, distribution and
reproduction in any medium or format, as long as you
give appropriate credit to the original author(s) and the
source, provide a link to the Creative Commons license
and indicate if changes were made.
The images or other third party material in this chapter are
included in the chapter’s Creative Commons license,
unless indicated otherwise in a credit line to the material.
If material is not included in the chapter’s Creative
Commons license and your intended use is not permitted
by statutory regulation or exceeds the permitted use, you
will need to obtain permission directly from the copyright
holder.
590
S. Yaodong and A. Gillespie
state-owned enterprises is difficult to implement.
Reform involves defining the responsibility of
state-owned asset administrative departments, the
division of labour between government departments, and the government’s authorisation to
delegate power to state-owned enterprises.
Fourth, mixed ownership reform is difficult to
implement. The reform pilot for mixed ownership
of state-owned energy enterprises involves second- and third-tier non-core subsidiaries and is
difficult to roll out at scale. The mixed ownership
reform aims primarily to make state-owned capital
open to private capital, creating a mix of
state-owned and private capital. Such a mix is not
simply adding or subtracting capital but integrating different governance mechanisms. Private
enterprise might reject the capital management
system and mechanisms of state-owned enterprises, while state-owned enterprises might not
accept the management system of private enterprise. As things stand, institutional integration is
the biggest obstacle. Questions such as “Which
businesses should be open to private capital?” and
“How should state-owned assets be valued and
priced?” are still unanswered. The businesses
favoured by private enterprise are not necessarily
open to them, while those open to them are not
necessarily attractive to them. The asset prices,
which are based on the government policy of
preserving and appreciating state-owned assets,
are likely to be higher than the expectations of
private capital. These are the real problems
underlying mixed ownership reform.
Open Access This chapter is licensed under the terms of
the Creative Commons Attribution 4.0 International
License
(http://creativecommons.org/licenses/by/4.0/),
which permits use, sharing, adaptation, distribution and
reproduction in any medium or format, as long as you
give appropriate credit to the original author(s) and the
source, provide a link to the Creative Commons license
and indicate if changes were made.
The images or other third party material in this chapter are
included in the chapter’s Creative Commons license,
unless indicated otherwise in a credit line to the material.
If material is not included in the chapter’s Creative
Commons license and your intended use is not permitted
by statutory regulation or exceeds the permitted use, you
will need to obtain permission directly from the copyright
holder.
590
S. Yaodong and A. Gillespie