Study On The Property Right Reform Of State-owned PE Enterprise

In October 2014,’the The State Council on accelerating the development of the sports industry to promote a number of opinions on sports consumption’ indicated that the devlopment of sports career and industry is a necessary requirement to the Chinese people health condition. The reform of state-owned enterprises is currently in the critical phase. In order to further develop the reform progress, the main objectives should be based on "Reform of Property Rights" and "Establishing Internal Management". Reform of Property Rights is the crucial key to the reform of state-owned enterprises. Currently, the Reform of Property Rights has affected all the aspects in the enterprise, therefore, advancing property reform and establishing appropriate property structure and organization to the sports industry is important for the major state-owned sports enterprise. Building a responsible and operational modern property system will have significant impact on the stablization and development of the entire sports industry. Overall, advancing the reform and transition of nationalized business and constantly improving the development activity is necessary for stabalizing the Socialist Market Economic, rapidly boosting economic and raising the people living standard.In this paper, four characteritics have been explored by analyzing the property features of state-owned sports enterprise which are the globalization of competitions, expanding of fitness industry, branding of sports products and the popularity of sports lottery. The cost of sports enterprise are formed by taxes cost, employers liability cost, and the environmental cost. The property structure of CSIG has shown the issues of single structure, operational obstruction, and lack of effective supervision. These issues have affected the property reform, and weakened the competitiveness of the CSIG. First, simplified property structure leads to weak equity flow and insufficient property restructuring. Second, untransparent property management caused insufficient supervision system and information revealing. Third, uncertain property responsibility has less protection to the individual holdings which can cause labor conflict in long term and against the further development of the company.Based on the issues listed above, four recommendations are brought up to improve the Chinese sports industry. First, the CSIG supervision system should be enhanced to improve the property publicity; Second, market oriented approach should be used to operate nationalized capital by relying on the property management of sports industry; Third, the supervision authority and the management authority should be separated in order to encourage self-management; Last, financial report and project approval system should be established to improve the flow of nationalized assets.