Research On The Equity Diversification Mode Of "Central-Local Mixed" ——A Case Study Of China Southern Airlines

In recent years,the equity diversification reform involves all walks of life and has a far-reaching impact.In the government work report issued by the two sessions in 2020,the central government further proposed to enhance the effectiveness of the reform of state-owned assets and state-owned enterprises.The important content is to expand the scope of equity diversification reform at the level of secondary and lower subsidiaries,and push the equity diversification reform to the group level.Moreover,the central enterprise groups generally have the problems of excessive supervision and "insider control" caused by "one share dominating",which can be solved to a certain extent by introducing new shareholders to achieve decentralized control.Based on the above considerations,this paper analyzes the concepts of equity diversification and mixed ownership in the reform of state-owned enterprises,and finds that the essence of the mixed ownership reform of state-owned enterprises at the micro level is the process of equity diversification.Equity diversification only emphasizes breaking the single shareholder ownership structure.Multiple investors with the same composition also belong to equity diversification,and mixed reform is included in equity diversification reform.After that,this paper summarizes the process of equity diversification reform of state-owned enterprises,the choice and development of path,and the influencing factors of path selection.It is found that the central enterprise group will choose to adopt the "Central-local Mixed" equity diversification model for reform under certain national,industry,enterprise and other reasons.These motivations include national policy orientation,intra industry competition,regional characteristics,industry sensitivity,avoiding the argument of "loss of state-owned assets",simple operation and low cost,completed company system within the group,joint-stock reform,the need to achieve decentralized control,deep influence of the group on listed companies and guaranteed equity reform of subsidiaries,the need to avoid the problems of central local cooperation in the past,the need for enterprises to obtain resources from local governments,and the strategic alignment between enterprises and local governments.This paper also focuses on the case of China Southern Airlines Group’s "Central-local Mixed" equity diversification reform.By introducing the development process of China Southern Airlines Group and the reform of group and subsidiary level,this paper analyzes and discusses the motivation and effectiveness of the "Central-local Mixed" mode adopted at the group level,so as to verify the conclusion of the "Central-local Mixed" model.In addition,the case study of China Southern Airlines Group also concludes that the news of the proposed equity diversification reform of the central enterprise group will bring significant positive market effect to its listed companies,while the news of the formal implementation of the group reform and the adoption of the "Central-local Mixed" equity diversification mode will not have a significant impact on the stock prices of its listed companies.The "Central-local Mixed" mode has an impact on the central enterprise group through two transmission paths.On the one hand,it promotes the formation of decentralized control of the group through the change of equity structure,improves the overall governance level of the group,and promotes the implementation of the group’s strategic decision-making.On the other hand,it alleviates its financing constraints and improves its operating conditions by injecting the raised funds into the listed companies.Finally,this paper summarizes the enlightenment of the reform of equity diversification mode of "Central-local Mixed",and suggests that the central enterprise group should innovate the reform thinking,explore the reform path,promote the reform of equity,improve corporate governance,strengthen the reform,enhance the wealth of shareholders and coordinate strategies with the government to achieve mutual benefit and win-win results.