The Performance Impact Of Introducing State-Owned Capital Into Private Enterprises

The "19th National Congress of the Communist Party of China" report for the first time included "private enterprises" in the Party Congress and highlighted the need to support the development of private enterprises,and the "20th National Congress of the Communist Party of China" report once again emphasized adherence to the The report of the 20 th National Congress once again emphasizes adherence to the "two unwavering" principles,calls for optimizing the environment for the development of private enterprises,protecting the property rights of private enterprises and the rights and interests of entrepreneurs in accordance with the law,and promoting the development and growth of the private economy.Private enterprises are gradually becoming an indispensable force for China’s development and are receiving increasing attention from the state and government.In this context,with the in-depth reform of the mixed ownership system,the mixed reform is no longer just a one-way introduction of private capital by state-owned enterprises,but private enterprises take the initiative to participate in the mixed reform based on the needs of their own development and after comprehensive weighing.In recent years,reverse hybrid reform has become a popular model of hybrid reform in mixed ownership reform.Therefore,it is necessary to study the introduction of state-owned capital into private enterprises,which can provide advice for private enterprises intending to introduce state-owned capital.As we all know,the environmental protection industry is the main force in promoting the construction of ecological civilization,but due to policy adjustments and changes in the situation,the business development of private environmental protection enterprises in China has been affected to some extent,facing challenges such as increased market competition,more financing constraints and difficulties in corporate transformation,so it has also gradually become an important area of reverse mixed reform,and since 2018,a number of private environmental protection listed companies have successfully introduced state-owned investment strategists.This thesis takes Beijing SPC Environmental Technology Co.,a leading company in the environmental protection industry,as a case study to investigate the motivation and performance impact of the "hand-in-hand" between private companies and state-owned capital.Firstly,this thesis analyses the case from three perspectives: the environmental protection industry,the development history of both parties involved in the reverse-hybrid reform,the process of introducing state-owned capital and the motivation for introducing state-owned capital.The financial performance was analysed using a comparative approach,focusing on the financial performance of Xinyuan Environment compared to the industry average,while the non-financial performance was found to improve its internal governance structure,capital issues,comprehensive business capabilities and cultural synergies.And market performance was examined using an event study approach.The study found that the performance of Fresh Environment after the introduction of state capital was good,with an overall improvement over the previous one.The above analysis concludes with conclusions and recommendations,with a view to providing lessons and references for private companies that have embarked on the introduction of state capital or are on the fence,as well as state-owned enterprises.