The NPC And CPPCC Release The Policy Signal Of "Deepening The Mixed Reform Of State Owned Enterprises", And The Capital Market May Become An Important Position To Help Reform

The reform of state-owned enterprises has become one of the hot topics in the NPC and CPPCC.

In the 2021 government work report, it is mentioned that it is necessary to "further promote the reform of key areas and stimulate the vitality of market entities", and the key point is to "thoroughly implement the three-year action of state-owned enterprise reform, to become stronger and better, to be a big country with capital and state-owned enterprises. We will deepen the reform of mixed ownership of state-owned enterprises.

On March 8, Zhao Chenxin, Secretary General of the national development and Reform Commission, said at the press conference of the office of the State Council that we should actively and steadily promote the reform of mixed ownership of state-owned enterprises and promote the four batches of more than 200 state-owned enterprises mixed reform pilot projects. To create a number of new benchmark enterprises and typical cases, it is necessary to timely summarize the practical experience of mixed reform and formulate the implementation opinions of deepening the mixed reform of state-owned enterprises.

? ? Hao Zhenshan, member of the National Committee of the Chinese people's Political Consultative Conference (CPPCC) and deputy general manager of CNOOC Zhanjiang Branch, pointed out in an interview that "CNOOC strictly contrasts with the implementation plan of the three-year reform of state-owned enterprises, and strives to be at the forefront and set an example in the implementation of the three-year reform of state-owned enterprises"; Si Zefu, member of the Standing Committee of the CPPCC National Committee and chairman of the board of the Harbin Electric Group, also said: "Harbin Electric Group will adhere to reform As a means to promote their own development and ensure that 70% of the three-year action reform target of state-owned enterprises is completed this year. At the same time, it is also necessary to overcome the challenges of mixed reform of enterprises

In addition to the frequent release of signals at the policy level, there are also practical actions at the enterprise level.

On the evening of March 9, following China Unicom, China Telecom also announced the return of a shares and plans to apply for listing on the main board of Shanghai Stock Exchange. As for the reason of returning to a, China Telecom said that it should seize the opportunity of digital development and promote the implementation of the strategy of transforming cloud to digital; broaden financing channels to enhance the ability of sustainable development; improve corporate governance and enhance the comprehensive competitiveness.

Earlier, China Unicom took the lead in launching the mixed reform, introducing strategic investors such as China Life Insurance, Tencent, Baidu, Jingdong, Ali, Suning, Guangqi, Huaihai ark, Xingquan fund, structural adjustment fund, etc., to become a model for private enterprises to participate in the mixed reform of central enterprises.

However, China Telecom's return to A-share shares this time has revealed that it will "introduce strategic investors who are in line with the company's development strategy, complement each other's capabilities and resources, and have synergistic effects", or it is also expected to explore a new path of "mixed reform" of state-owned enterprises.

Many policy and market signals show that the national reform in 2021 may enter the "acceleration" stage.

2021 national reform in depth

In 2020, as the start year of the three-year reform of state-owned enterprises, the mixed reform of state-owned enterprises, reorganization and integration, and the reform of state-owned assets supervision system are all advancing rapidly.

In this year, despite the impact of the new epidemic, the state-owned assets supervision enterprises in various regions still achieved revenue of 29.2 trillion yuan, a year-on-year increase of 7.2%; and a net profit of 1.2 trillion yuan, with a year-on-year decrease of 8.5% from the lowest valley of 78.9% in the first quarter. Among them, Jiangsu, Sichuan, Hunan, Guizhou, Guangxi, Hainan, Tianjin and other nine places achieved positive growth in net profit.

In 2020, the net profit of central enterprises reached 1.4 trillion yuan, a year-on-year increase of 2.1%. At the beginning of last year, affected by the new crown pneumonia epidemic, crude oil prices, international air transport and other factors, the benefits of central enterprises increased by 58.8% in the first quarter of last year.

By the end of 2020, the average asset liability ratio of central enterprises was 64.5%, achieving the goal of "the average assets and liabilities of central enterprises will not be higher than 64.7% by the end of 2020".

Entering 2021, as a crucial year for the reform of state-owned enterprises, the same task is arduous.

The work report of the government points out that "we will thoroughly implement the three-year reform of state-owned enterprises and make them stronger, better and better, and become a big country with capital and state-owned enterprises". This also means that the reform of state-owned enterprises will continue to advance in depth in 2021.

Peng Huagang, Secretary General of the state owned assets supervision and Administration Commission of the State Council, said at a press conference on January 19 that he would strive to complete more than 70% of the three-year overall reform task by the end of 2021. Substantive breakthroughs have been made in important areas and key links, laying a solid foundation for the comprehensive completion of the three-year action task in 2022.

In the face of the "three-year action of in-depth implementation of state-owned enterprise reform" in 2021, Ding Bokang, chairman of modern consulting group, pointed out that its direction is to stand in the perspective of maintaining and increasing the value of state-owned capital, improving the competitiveness of state-owned economy, and enlarging the function and function of state-owned capital.

"On the one hand, we should carry out in-depth reform of the system and mechanism to further improve the supervision and management system of state-owned assets and the investment, operation and management mechanism of state-owned enterprises and state-owned capital; on the other hand, we should encourage and support this reform from the system and policy level. Including the implementation of property rights system reform, such as mixed ownership, professional manager system reform, salary and distribution system reform Ding Bokang said.

Li Jin, chief economist of China Enterprise Research Institute, also pointed out: "to strengthen, optimize and enlarge state-owned enterprises and state-owned capital, and to enhance the competitiveness, innovation, control, influence and risk resistance ability of the state-owned economy, that is," three to five "is the direction and goal of (deepening the reform)

In Li Jin's view, with the strengthening of the status of state-owned enterprises, the direction of market-oriented reform has not changed. During the outbreak of new crown pneumonia, China has emphasized the status of state-owned economy, but the market-oriented direction of the whole enterprise will not change.

Deepening "mixed reform" is a key task

Specifically, "mixed reform" is still an important point in the main tasks of state-owned enterprise reform. In this year's government work report, we also focus on "deepening the reform of mixed ownership of state-owned enterprises".

"The three-year action plan for the reform of state-owned enterprises puts forward a lot of requirements. It is a system, but I think the most important thing is the mixed reform. At present, there is a "double hundred pilot" for the mixed reform, that is, 200 pilot enterprises, including 100 central enterprises, 100 local state-owned enterprises, and 200 science and technology demonstration enterprises. The pilot project of mixed reform is to realize mixed ownership, which requires private capital and non-state-owned capital to come in. " Zhou Fangsheng, vice president of China enterprise reform and Development Research Association, pointed out in an interview.

The mixed reform of China Unicom launched in 2017 has always been the focus of the market. On August 16, 2017, China Unicom announced the mixed reform plan at the mid-term performance conference, announcing that it would introduce a number of strategic investors, including Tencent, Baidu, Jingdong and Alibaba, to subscribe for a shares of China Unicom.

At the beginning of China Unicom's mixed reform, China Unicom has strengthened its internal reform efforts. At that time, the plan was to take three steps. The first step was to reform the organization by "reducing body weight and keeping fit". In the year of the mixed reform (2017), the headquarters departments were reduced by 26%, the staffing decreased by 50.14%, and the provincial company management departments required an average reduction of 26%. The second step is "small contracting" to stimulate the vitality of grassroots units. The third step is to "be able to go up and down", to eliminate part of the management personnel by means of the first appointment of cadres, the demolition of temples and the reduction of monks.

In fact, from the implementation of "mixing" to "reform", it has always been a big pain point in the mixed reform of state-owned enterprises.

"Mixing is the foundation and reform is the purpose. As far as I know, many enterprises have achieved mixed ownership, but they still have little effect in the aspect of reform and can not replace reform with mixed ownership. The so-called reform is to mix the systems and mechanisms for all enterprises to realize marketization. There is still a big gap in this regard. I think this is the difficulty and pain point in implementing the three-year reform action plan, and it is also the problem and direction to be solved. " Zhou Fangsheng said.

Ding Bokang also pointed out that "to promote the reform of mixed ownership, we not only need to introduce external small and medium-sized shareholders, but also change the situation that state-owned shares are dominant. At the same time, we also need to give full play to the ability and advantages of small and medium shareholders in market development, enterprise management, cost control and other aspects, so as to change the situation of low operating efficiency of state-owned enterprises. Through the mixed reform of attracting investment, the goal of introducing system and talent can be realized. To realize the mutual promotion and integration between the "mixing" of property ownership and the "reform" of operation and management of state-owned enterprises. "

The capital market will help the reform of China

It is worth mentioning that the state-owned enterprises are an important part of the capital market, and with the implementation of the registration system reform of the capital market and the transformation of the state-owned assets supervision system from "asset management" to "capital management", the capital market has become an important position in the reform of state-owned enterprises.

Wind data shows that among A-share listed companies, state-owned enterprises account for 28% and the total market value accounts for 39%. As of March 10, 2021, there are 4086 non-financial listed companies in a shares, including 377 central state-owned enterprises with a total market value of 1.165 billion yuan, and 745 local state-owned enterprises with a total market value of 1.360 billion yuan.

Specifically, since 2020, as of March 10, a total of 27 state-owned enterprises have been listed in the A-share market. Among them, shunkong development, China gold, China Southern Power Grid energy, Jiangtian chemical and China Electronics are new listed companies in 2021. As of March 10, 15 of the newly listed state-owned enterprises were local state-owned enterprises and 12 were central state-owned enterprises. Under the registration system, the listing speed of state-owned enterprises was significantly accelerated. Nine enterprises were listed on the science and technology innovation board, and six were listed on the gem.

From the perspective of industry distribution, the above-mentioned enterprises are not only engaged in traditional industries such as infrastructure and property management, but also enterprises engaged in emerging industries such as semiconductor and computer application, such as Perry and Tongniu information.

In addition, in the acquisition of listed companies, state-owned enterprises have also gained a lot. According to incomplete statistics by reporters, there are 35 state-owned enterprises in Shenzhen, mainly covering electrical equipment, mechanical equipment, medical biology and other important industries and key fields, such as China Resources Group's acquisition of Dirui medical, extension of the group's medical industry chain layout; Zhuhai state-owned assets acquisition of Tongyu heavy industry, integration of wind power industry chain advantage enterprises; Qingdao state-owned assets acquisition of Wanma shares, Expand the emerging industrial clusters related to cables and charging piles.

At the same time, in the aspect of deepening the mixed reform, there are also many important cases emerging, such as TCL technology's acquisition of 100% equity of Zhonghuan group, the parent company of Zhonghuan, forming a new layout of complementary advantages and coordinated development in the semiconductor industry chain.

This is only a part of the reform carried out by state-owned enterprises with the help of the capital market. According to the reporter's analysis, looking back at 2020, the trend of implementing mixed reform with local state-owned enterprises and cities above the state-owned enterprises will be more distinct.

For example, Fujian actively and steadily promoted the mixed ownership reform in the form of restructuring and listing, with 16 provincial holding listed companies; Shandong took the mixed ownership reform as an important part of the "countdown" reform of state-owned enterprises, and implemented the three-year (2019-2021) work plan through asset securitization and other means. 248 enterprises completed the mixed reform or implemented the second mixed reform throughout the year, attracting various types of enterprises The capital was 26.951 billion yuan, accounting for 68.9% of the total.

"There are many reasons for the implementation of mixed reform of local state-owned enterprises and cities above. I think it is an inevitable choice for the government to maximize the use of resources and avoid the risk of loss of state-owned assets. In terms of economy, transparency, risk and safety, the implementation of mixed reform with listing as the carrier is much better than other forms of property investment at present, such as enterprise investment and project investment, valuation and realization Ding Bokang said.

In Ding Bokang's view, the local state-owned enterprises complete the mixed reform by means of securitization, which mainly shows the advantages and advantages of this kind of mixed reform in evaluable, quantifiable and perspective aspects. Moreover, under the current situation, the listed companies are also a kind of rare resources, and their operation and utilization value is relatively large.

"However, with the continuous promotion and deepening of the listing registration system, the development of China's capital market will become more and more perfect in the future, which will provide more conditions and opportunities for state-owned enterprises to implement the mixed reform, increase more diversified investment and financing channels, and gradually dilute the most popular main position of mixed reform at present." Said Ding Bokang.

Zhou Fangsheng also pointed out that "securitization has always been a choice for local state-owned enterprises. For local state-owned enterprises, the purpose of securitization is to finance. At present, there is still a great demand for enterprise financing, and the capital market is the best financing channel. However, listing is not the only one. Those suitable for listing will not be listed. Now the CSRC has become more and more strict with the listing requirements of enterprises. Especially after the registration system, the CSRC requires the sponsor institutions, lawyers and accountants to bear legal responsibility for these companies. "

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