A Study On The Path And Effect Of Local State-Owned Assets Bailing Out Private Enterprises With Equity Mode

The private economy has an extremely important position in our country and plays an irreplaceable role in national taxation,technological innovation and employment stability.However,private enterprises have suffered from "credit discrimination" for a long time and faced financing difficulties.A considerable number of private enterprises have embarked on the road of high-proportion equity pledge financing.Since 2018,the international economic situation has changed,and trade disputes have occurred frequently.At the same time,domestic supply-side reforms have been deepened,attention has been paid to environmental protection,and economic growth has slowed down.Under the superposition of two factors,domestic stock market prices fell sharply.Moreover,the financial deleveraging policy has been continued in 2018,and the implementation has even been further increased.The financing channels of private enterprises have been further reduced,and a large number of private enterprises are facing the crisis of stock pledge liquidation.In order to save private enterprises,stabilize market confidence,and prevent systemic crises,the CPC Central Committee calls on local governments to take the lead,combining the strength of state-owned capital and social capital,to bail out private enterprises that have fallen into the equity pledge crisis.In the context of state-owned assets assisting private enterprises,the research on state-owned assets bailout has become a hot issue,but so far,relevant research is still insufficient.This thesis summarizes the relevant literature at home and abroad,summarizes the relevant theories and explores the impact path of the equity bailout model from a theoretical perspective,and on this basis,studies the specific case of Hubei Hongtai’s bailout of Wanrun Technology.This thesis introduces the basic situation of Hubei Hongtai and Wanrun Technology,and sorts out the whole process of bailout.In terms of bailout motives,this thesis analyzes the motives for reaching a bailout agreement from the perspectives of Hubei Hongtai and Wanrun Technology,validates the impact path of the equity model bailout,and then through the market reaction and financial performance for further analysis.The results of the analysis of the financial statements of Wanrun Technology have proved that the effect of state-owned assets bailout is focused on solving the problem of lack of funds for private enterprises,and it has little effect on financial indicators that can better represent long-term effects.It shows that the investment of state-owned assets can solve the capital dilemma of private enterprises,but it is difficult to reverse the operating dilemma of private enterprises.At the same time,in terms of market reaction,the market has a positive attitude towards Hubei Hongtai’s acquisition of Wanrun Technology in the short term,but it is not optimistic in the long run.The analysis of financial performance and market reaction shows that the equity bailout process has not fully achieved the expected purpose.This thesis then explores the reasons why the bailout effect did not meet expectations,and summarizes it from three perspectives:industry,management,and legacy issues.In addition,this thesis studies the risk points in the process of state-owned assets bailout,and provides reference for subsequent state-owned assets bailouts.After analyzing the case of Hubei Hongtai’s bailout of Wanrun Technology,this thesis proposes targeted policy recommendations from three perspectives:the bailout party,the bailout party and the government,based on the relevant data and research conclusions of state-owned assets bailouts.The research of this thesis have at least the following two aspects.On the one hand,the research conclusions of this thesis enrich the relevant literature content of state-owned assets bailouts,and make certain contributions to the path research and investigation of the long-term effects of state-owned assets bailouts and risk point.On the other hand,as of now,the economic situation at home and abroad has not fundamentally improved,especially due to the impact of the new crown epidemic,the financing difficulties of private enterprises have not improved or even worsened.Existence,the research content and conclusions of this thesis can provide a certain reference for the bailout parties.