Enhance The Liquidity Of State-Owned Assets &Nbsp; Further Explore The Direct Shareholding Listed Companies

Shanghai SASAC said to the China Securities Journal reporter.

Focus on enhancing liquidity of state assets

According to people familiar with the matter, Shanghai Construction Engineering Group is one of the possibilities in the selected enterprises, or will become the next pilot enterprise.

Prior to this, Shanghai Construction Engineering (600170) has invested 12 companies and 9 houses in the parent company's construction group through private placement.

If this plan is implemented, it will be the second case of Shanghai SASAC directly holding shares of listed companies.

When the Shanghai port group was restructured in 2005, it was directly held by the Shanghai SASAC. In 2006, when the Hong Kong Group went on the market as a whole, it realized the direct holding of the listed company by the SASAC.

Unlike the direct water holding group of Hong Kong Group, the direct water holding nature of Shanghai has a different macro background.

"Under the background of Shanghai's economic structural pformation, it is urgent to establish a smooth mechanism for the withdrawal and withdrawal of state assets."

Yang Jianwen, executive vice president of Shanghai state owned capital operation research institute and director of the Department of Economic Research of the Shanghai Academy of Social Sciences, told the China Securities Journal reporter that strategic emerging industries need to play a major role in state-owned capital. One of the prerequisites is that state assets can smoothly achieve "retreat" and "go in" and withdraw from the general competition industry so as to get capital to invest in emerging industries.

Such trade-offs are difficult to accomplish at the level of state-owned enterprise groups, and need to be grasped at a higher level.

It can be envisaged that after the SASAC's direct shareholding, the SASAC office resolution will be able to sell or increase the shares of Listed Companies in the capital market, and no longer need to give instructions to the middle tier companies as before, and the mobility of state-owned capital will be greatly enhanced.

Exploration of state assets in various ways

Of course, the SASAC is also exploring various ways to develop the mechanism of state capital flexibility and retreat.

Shanghai SASAC said to the China Securities Journal reporter: "the Hong Kong Group's overall listing and direct shareholding by the SASAC is an exploration of Shanghai.

We support qualified enterprises to adopt this approach, but we do not exclude other enterprises from taking different approaches.

The way to obey the effect depends on whether it meets the requirements of enterprise development.

In fact, the Shanghai state capital management company, which was born at the end of March, is located in the "exclusive equity management".

In Yang Jianwen's view, whether the state-owned capital management company or the direct shareholding of the listed company by the SASAC is the same purpose.

But for various reasons, the state-owned capital management company has not made any further moves.

Under such circumstances, Shanghai SASAC is also considering other perspectives.

It is worth noting that the direct shareholding of listed companies by the SASAC, though there is no legal problem, has always been a way for people to see what is right and what wise men can see.

The proponents believe that the direct investment of the SASAC is the shortest principal-agent chain, and the principal-agent cost is the lowest, which can avoid the problem of diminishing efficiency and insider control.

Opponents believe that before the SASAC has become a "pure contributor", the direct shareholding by the SASAC will easily lead to the separation of the functions of the social managers and the functions of the investors.