A Case Study On Asset Restructuring Of Zhongyuan Special Steel

Along with our country economic development into the new normal,the dynamics of traditional iron and steel industry development is insufficient.Because "three to one drop a fill" reform strategy is put forward,the steel industry faces to the situation of upgrading the industrial structure.Therefore asset restructuring which can quickly solve this problem becomes a hotspot that the numerous troubled state-owned firms pursue.The China securities regulatory commission(CSRC)issued new regulations on the administration of material assets reorganization of listed companies in 2016,which clearly and strictly stipulates the standards for the identification of material assets reorganization and listing in the transaction of material assets reorganization,and makes every effort to regulate the chaos in China’s securities market,which means through material assets reorganization and successfully passing the CSRC audit to save the enterprise situation could be a more difficult way.Hence,many listed companies in the capital market which consider asset reorganization as an effective upgrading strategy hope to avoid being recognized as reorganization and listing in the design of reorganization plan.Policy due to the time is shorter,and the cross steel between state-owned enterprises and financial industry precedent is less,the material assets reorganization to the future way out under the strict rules and how to seek reform of state-owned enterprises to provide Suggestions and ideas,this article embarks from the restructuring of motivation,analyses how to choose the appropriate transaction object,in the process of restructuring state-owned enterprises how to use the convenient advantage resources in assets reorganization,how to design the trading scheme under the new standard as well as the possible risk in the trading system,evaluating the market reaction of restructuring is not complete,to expand space for state-owned assets reorganization among enterprises.This paper adopts the case study method to analyze the development history and industrial development progress of Zhongyuan special steel,a state-owned listed company.Then the performance quality of COFCO capital,the target company selected in the restructuring of Zhongyuan special steel co.,ltd.and the purpose of the company’s listing on the curve are analyzed,and it is believed that the purpose of the non-listed company COFCO capital is to seek a faster listing way and conduct the asset restructuring in compliance with the purpose of the SASAC to protect state-owned assets from loss.Thirdly,this paper summarizes the reasons for the success of this transaction through the analysis of the motivation of the material assets reorganization and the reorganization scheme design of Zhongyuan special steel,and how the listed company,the target company and the SASAC involved in this reorganization can achieve their respective goals smoothly through the reorganization scheme design.Finally,through the analysis and calculation of the restructuring risk and market response,this paper evaluates the effect of the restructuring,and explains and summarizes the reasons why the restructuring did not get a good market response,and provides relevant suggestions for the state-owned enterprises that hope to conduct similar transactions in the future.Accordingly,based on practical cases,this paper analyses the capital market in the listed company in the face of increasingly stringent restructuring that audit standards,the stateowned enterprise restructuring in the future how to avoid the related standard and get positive market reaction,and put forward the following suggestions for the enterprise: one is to pay attention to protect the rights and interests of minority shareholders,in the trade for the enterprise bring good market reaction after restructuring;Second,state-owned enterprises should make reasonable use of policy advantages and administrative guidance,so that enterprises can have more suitable trading objects to choose from.Third,state-owned enterprises should always pay attention to the change of rules and choose reasonable trading objects and trading schemes suitable for their actual conditions.