State-owned Property Trading Options

Property rights exchange is an economic behavior of the whole production factor flow after the social productivity turned into the higher phase. It's the inevitable result of the social production, an important part and the senior expressive form of the market economics. Whatever on the microcosmic and macroscopical management or on the economic and the social efficiency, developing the property exchange works should be significant.The Third Session of the sixteenth Central Committee of the CPC has passed the document DECISION ON SOME QUESTIONS CONCERNING ABOUT CONSUMMATING SOCIALISM MARKET ECONOMIC SYSTEM', to give emphasis to accelerating the state-owned economic configuration adjustment, carrying out the diversified sources of investment, making the joint-stock system to be the main form of the public-owned system, and establishing the integrated modern enterprise system with the clear adscription, the transparent responsibility and rights, the strict protection and the smooth exchange. Our state-owned enterprise must set up the modern property rights system before establishing the modern enterprise system. The core of the state-owned enterprise is the reform of the enterprise property rights, it's how to make the property rights system as a tache and establishing the modern enterprise system in according to the market economics requirements.The state-owned enterprise reform is the key of the national economic systemreform, and it is also the key of success. In these years, as the tache of the state-ownedenterprise reform, the procedure and the form of the property rights exchange becomethe focus in different fields. In the procedure of operating, it's hard to explore thepotential of the market value and the exchange price couldn't be the true valuebecause of the unbalanced information. How to ensure the price and find the bestbuyer turns to be complicated, and this leads a high cost. If we choose the consultativeexchange form, it would cause the loss of the assets. And now auction as acompetitive way, under such a circumstance of the unbalanced information, leads amore reasonable form of the exchange. So the auction form can almost solve thedifficulties of ensuring the price of the property rights, and avoid the loss of assets andcorruption at the same moment. It will be propitious to the value increase andguarantee of the state-owned enterprises. In the February of 2004, the State-ownedAssets Supervision and Administration Commission and the finance ministry of theState Council jointly issued 'INTERIM MEASURES ON STATED-OWNEDENTERPISE PROPERTY RIGHTS EXCHANGE MANAGEMENT ', itstipulates that the state-owned enterprise property rights can choose auction, publicbidding, consultative forms and the others in term of the national laws andadministrative regulations.Auction has turned to be an important form of the state-owned enterprise property rights exchange. This dissertation is about the analysis and comparison of the three kinds of exchange modes of the property rights exchange of the state-owned enterprises: auction, public bidding, and bargaining. We also take advantage of establishing some maths models to study the affections caused by using the different exchange modes. Only by constituting a consummate auction system, we can ensure the procedure of the auction to be completed successfully. And I also hope this theme be significant to our state-owned property rights exchange.