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

Research Report, No. 46, 2020 (Total 5790) 2020-3-19

Abstract: Under the background of the reform of “managing capital”, the fund-based operation of state-owned capital has entered the stage of large-scale development. Under the requirements and support of related policies, the main sponsors of state-owned funds established a specialized investment platform, designed the structural profit discount that prioritizes the good funds, explored equity diversification or mixed ownership at different levels, strengthened stable and sustainable business practice, and insisted on value and endowment investment. All these measures have amplified the guiding role of state-owned capital and enabled it to use capital power to boost the reform of state-owned enterprises and rebuilding of the value chain. However, in practice, there are also problems such as how to better integrate the fund operation with state-owned capital supervision and how to better combine the market-oriented mechanism with implementation of the national strategies. Therefore, the following suggestions are proposed. Relevant laws and regulations should be revised to provide legal protection for the marketization of state-owned fund. The state-owned capital management system should be further improved with the focus on capital management, to provide greater development space for state-owned capital funds. A good and healthy relationship between the government and enterprises should be established and mechanism innovation should be supported to create conditions for the state-owned funds to integrate national strategies with market mechanism.

Key words: state-owned capital, fund-based operation, two types of companies