Beijing Is A Competitive Research SOE Managers Regulatory Model

State-owned enterprises (SOEs) is the backbone of national economy, which playsan influential role in keeping stable development of national economy and making socialresource allocation. On November8th,2013, The Decision on Major Issues ConcerningComprehensively Deepening Reforms, issued by The Third Plenary Session of theEighteen Committee of the Communist Party of China, primarily identified the project ofSOEs’ classification and reform. Although government-related regulatory authority hasintroduced a series of policies to regulate the owners of SOEs’, in fact, there is noscientific and effective regulatory mode for SOEs, owning to long-lasting agencyproblems, asymmetric information, uncoordinated relationship among stakeholders.Consequently, it results in a number of problems as low efficiency of SOEs, severe lossof state assets, staff’s over expense and corruption, etc.This paper adopts an analysis method combined of theoretical research andcomparative research to illustrate the theoretical basis of SOEs’ regulation, including thenature of enterprise, property right, agency, corporate governance and operators’regulation. Based on the above-mentioned, this paper identifies the basic category ofcommon SOEs, competitive SOEs and their regulation. What’s more, through theanalysis on regulatory mode of SOEs in the U.S., Germany, Singapore and Japan, thispaper provides suggestions and enlightenments for China’s. At last, it introduces theevolution of SOEs’ regulation in China and its regulatory mode: SASAC—state-ownedholding companies—SOEs.Through the above-mentioned analysis, this paper mentions the ideal mode forBeijing’s competitive SOEs’ regulation:1. Duality. We are supposed to simplify theregulatory system of SOEs, narrow the operation range of competitive SOEs, reduce thecost for regulation and simplify the agency relations so as to bring the advantage of SOEsto full play.2. Multi-departments involved regulation mode. It includes governmentsystem, government related departments, social system and internal system of SOEs.Moreover, we can divide it into four parts: internal regulation, external regulation,administrative regulation and legislative regulation. As to the regulation mode, this paperaccordingly gives policy advises, including the upgrade of the mechanism of selectionand the establishment of performance appraisal system in competitive SOEs, optimize themechanism of check and balance among shareholders, board of directors and board ofsupervisors, strengthen the regulatory mechanism of talent market and capital market andimprove the related laws and regulations.