A Research On The Approaches To Stripping State-Owned Remainder Enterprises Of Their Social Functions

The state-owned remainder enterprise, also known as remainder company or state-holding company, is a new term created in 1990s when large-sized state-owned enterprises transformed into listed companies. During this traditional system transformation process, an enterprise can not change into a listed company as a whole due to its historical burden, such as the debt, and attached social functions which can not be totally borne by the government. In order to establish a new burdenless listed company, the main business and superior assets are therefore separated from the original company, and the leftover sideline business, non-performing assets and its original social functions are integrated into a remainder enterprise.With the reorganization , institutional reform and the overall listing of large sized enterprises, the leftover issues become harder to solve and have imposed heavier burden on the remainder enterprises, although the central government has strengthened the implementation of separation of social function and offered some preferential policies.Due to the poor assets quality and less competitiveness of the remainder enterprises, their reform, survival and development has been put on the top of the priority of state-owned enterprises reform at present, and stripping their social functions has become a urgent task. The improper settlement of the historically leftover issues could jeopardize the interest of listed companies and increase the social cost and risk of state-owned enterprises reform, which in turn would bring about some unfavorable effects harmful to the enterprises and social stability and compromise already achieved economic results.From the perspective of social management functions of the government, this paper proposes approaches to stripping state-owned remainder enterprises of their social functions through the joint efforts of government, enterprises and market under the principle of market economy, so as to relieve their heavy burden, promote their smooth development and guarantee the value increment and maintenance of state-owned assets.