A Study Of Private Capital Participating In The Restructuring Of State-owned Enterprises

Private capital refers to the sum of non-state-owned capital and non-foreign-heldcapital of a country or a region. It is all private capital lies in private enterprises,joint-stock enterprises in the private capital and other forms of private capital. And itis also the capital of micro-economic subjects which is based on profit maximizationas the management goal.For over30years reform and opening up, private capital has made the importantcontribution to the economy sustained, healthy and steady development of our country.As private capital itself is strong, it has an advantage of high flexibility and strongsocial adaptability, and it is more and more important in the social-economicdevelopment. After decades of restructuring, Chinese state-owned enterprise has maderemarkable achievements, initially establish a modern enterprise system. But there arestill some questions of state-owned enterprises, for example, without a clear linebetween the functions of the government and enterprises; loss of state assets; curingmonopoly interests. Private capital participate in China’s reform of state ownedenterprises, can further improve the socialist market economic system, optimize theallocation of social resources. This paper discusses the meaning and developmentstatus of private capital, describes the process of restructuring of state-ownedenterprises and the problems still existed, and analyses the favorable conditions andrestricted factors of private capital participating in the restructuring of state ownedenterprises, all that can provide some advice for the private capital participating in therestructuring of state-owned enterprises.This paper is divided into five parts. The first chapter is an introduction, here wegive a brief introduction of the problem and give some basic knowledge which will beused in the study of this article. And then we introduce the main idea of the method. The second chapter describes the meaning of private capital and the currentdevelopment of China’s private capital. The third chapter clear the meaning ofstate-owned enterprises, expound China’s state-owned enterprise restructuring process,the main experiences and the problems that existed in the restructuring. The fourthchapter analyses the favorable conditions and constraints of the private capitalparticipating in China’s state-owned enterprises reform. Favorable conditions forprivate capital, including the advantages and favorable external environment;hindering factors include the limitations of the own private capital, market accessbarriers, barriers to social concepts, operating mechanism obstacles. The fifth chapterdiscusses the main way of private capital to participate in the restructuring ofstate-owned enterprises, including reducing market access barriers, improving theexternal environment, the merger and reorganization of state-owned enterprises,improving the internal management.