Motivation And Performance Analysis Of The Reform Of Mixed Ownership In State-owned Enterprises

With the continuous development of China’s market economy,state-owned enterprises,as an important part of China’s market economy,play a pivotal role in enhancing the sustainable development of China’s overall economy.However,among the established state-owned enterprises,there are many problems that hinder their development,such as a single shareholding structure,imperfect governance structure and low operational efficiency,resulting in the overall standard of state-owned enterprises being significantly lower than that of private enterprises.The Fifth Plenary Session of the 19 th CPC Central Committee proposed to deepen the reform of state-owned enterprises,make state-owned capital better and bigger,accelerate the improvement of the modern enterprise system with Chinese characteristics,and deepen the reform of mixed ownership system of state-owned enterprises,which has pointed out the direction for deepening the reform of state-owned enterprises.The specific paths of mixed reform of state-owned enterprises include the introduction of strategic investors,employee shareholding,restructuring and listing,etc.However,the impact of choosing different paths for mixed reform on state-owned enterprises will be different.The full-scale promotion of hybrid reform is not only to optimise the shareholding structure of SOEs,but also to introduce more advanced and scientific management mechanisms to enable them to carry out their governance work more efficiently and to make them more competitive in the market-oriented platform.This thesis adopts the literature research method to sort out and summarise the relevant literature,introduce the motives and realisation forms of mixed ownership reform in state-owned enterprises,the development history and current situation of mixed ownership reform,and provide an overview of relevant theories to provide the theoretical basis for the case study part of this thesis;analyse the motives and paths of COFCO Capital’s two-stage mixed ownership reform through the case study method,then use the comparative analysis of financial indicators and the event study method to analyse the effects of COFCO Capital’s mixed ownership reform and explore the impact mechanism of COFCO Capital’s mixed reform,and finally draw conclusions and insights from the case.A case study of COFCO Capital’s mixed ownership reform reveals the following motivations for its implementation:(1)promoting the Group’s mixed reform process to assist in its overall strategic layout;(2)broadening financing channels to break capital constraints;(3)completing market-oriented reform to optimise its shareholding structure;(4)seeking resource integration to enhance its market competitiveness;and(5)building a listed agricultural finance platform to improve its production and financing capabilities.According to the analysis of the effects of COFCO Capital’s mixed ownership reform,in terms of financial performance,COFCO Capital’s profitability,operating capacity,debt servicing capacity and development capacity all improved to a certain extent after the implementation of the mixed reform;in terms of market response,the second phase of COFCO Capital’s mixed reform produced positive short-term market performance and increased the company’s share price.The mixed ownership reform of COFCO Capital has brought us the following enlightenment: First,when state-owned enterprises choose the path of mixed ownership reform,they need to clarify the reasons for mixed ownership reform and carefully choose.Second,state-owned enterprises should clarify their development strategies,pay attention to the integration of resources between the main body of mixed reform and strategic investors,and maximize synergies.The key to the reform of mixed ownership is mechanism reform.I hope this article can provide some reference for state-owned enterprises that implement mixed ownership reform in the future.