After China's Debt-equity Swap Of Equity Flows And Corporate Restructuring

Transforming financial claim into stock equity is the important means to improve China's financial circumstances, to vigorously develop the state-owned enterprises and to reform China's economy. By the end of the year 2000, the first of the transformation, as a specially designed conception in China, has been completed. However, it, as a fact, has not finished. As the second step of it, the transformation requires careful and skillful handling the flow of stock equity, further reorganizing the enterprises whose debts are transformed into stock equity and standardizing their management. In reality, the second step is much more difficult. The transformation is actually to rearrange the debts of the enterprises. The rearrangement can carry the reorganization of the enterprises forward so as to improve their quality and make the strategic adjustment of the whole national economy to be a main line. After the transformation, the stock equity flow is of vital importance in the main line of the reformation for it has an important bearing on whether the management companies of the national assets can succeed in selling their own stock equity and further reorganizing the enterprises and standardizing their management, even on whether new credit order can be laid a foundation. Therefore, it is necessary to further study the flow mode of stock equity after the transformation, the features of all kinds of the modes, the obstacles to probably meet, the ways to clear away the obstacles and the relations between the flow of stock equity and reorganizing the enterprises; as well as to use the experiences of rearranging the enterprises' debts and stock equity flow in other countries for reference. All of these have not only theoretical significance to deeply push on studying the subject but also a realistic significance to clearly know the real problem existing in the reformation and to seek the way to solve them.This thesis is divided into six parts, which involves the flow of stock equity after the transformation and reorganizing the enterprises.Part One discusses the theoretical basis to transform financial claim into stock equity in China. The transformation in China has the popular features of rearranging the debts in the world as well as its own ones. There are two channels of it: One is for the banks to transform the harmful financial claim into its own investment in the enterprises; the other is to depend on the intermediary institutions, who at first, buy the harmful financial claim of banks and then transform them into the investment in the enterprises. In view of the existing situation in China, the second one should be used. The intermediary institutions should be formed to trust the debts, which has the abilities to supply money as well as consult and put into effect.Part Two expounds the actual development and result of the transformation in China. The initial result is that the financial debts of the transformed enterprises have been obviously lessened as well as to have improved the capital structure of them and to have primarily changed and reorganized the right of dominating the enterprises and also to have evidently improved the quality of the banks' assets. But the flow of stock equity is very slow and full of difficulties after the transformation.Part Three covers the real problems existing in the flow of stock equity after the transformation. The present mode of the stock equity flow, which actually majors in buying back, has quite a few disadvantages as it brings a bear on the transformed enterprises in cash flow and blocks up the passageway for the investors at home and abroad to participate in reorganizing the enterprises.Part Four puts forward the reformation proposals to improve the flow of stock equity. One is to improve the flow the debt trust ability of the financial management corporations; the other is that marketing the flow of stock equity is the key to solve the problems.Part Five cites some abroad experiences to reference and the enlightenment which China gains from them.