By Xiang Anbo, Research Team on “The Management of State-owned Capital Investment and Operation Companies”, Enterprise Research Institute, DRC

Research Report, No. 94, 2020 (Total 5838) 2020-5-6

Abstract: Equity management plays an important role in state-owned capital investment and operation companies, but there are still some problems in these companies such as indistinct rights and responsibilities, irregular behaviors and inadequate management. These issues are mainly due to the following factors such as incomplete shareholders’ rights, imperfect corporate governance, unsound system and mechanism as well as unrealistic mechanism design. The underlying reasons are that the understanding of equity management is not adequate, and the awareness on distinct rights and responsibilities and the equality of equity and shareholders remains to be conscientiously improved in terms of equity management. In view of the above-mentioned facts, with regard to shareholders entrusted by the government as agents of state-owned capital, it is necessary for them to complete the transformation from state ownership to state-owned equity, promote the differentiation between shareholders’ equity and corporate property rights, ensure that shareholders enjoy complete equity rights and do not assume unrelated joint liability beyond the stipulations of the law. As regards the legislative bodies, it is necessary for them to further promote the equal protection of equity of different types of ownership by law, establish the system of classified shares to enrich the connotations and extension of the principle of equity equality, and promote equality from equity to shareholders. With respect to state-owned capital investment and operation companies, in order to achieve standardized and effective equity management, they need to take corporate governance as the main channel for equity management, improve the system of equity management and design an equity management mechanism in a scientific manner.

Keywords: equity management, government capital, investment operation