By Yuan Dongming, Member of the Research Team on "The Outstanding Contradictions in and Countermeasures for Deepening Reform of State-Owned Enterprises", Enterprise Research Institute, DRC

Research Report No. 70, 2016 (Total 4953) 2016-5-26

Abstract: Since the turn of the century, the state-owned capital has gradually become concentrated in some major industrial sectors and fields, but this adjustment is mainly realized through incremental investment. The accumulative state-owned capital is still found in a large number of less important industries and the move to reduce investment of state capital and make it transfer to some other sectors is rather inadequate. At the same time, the state-owned capital has not played an effective role in terms of its due policy functions to provide public services, support technological progress or make industrial upgrading. Viewing from its performance over the past 10 years, the state-owned capital like other capitals has the characteristics of “drifting with the tide” and "pursuing profits", which is the objective reason making the distribution adjustment of the state-owned capital difficult. In addition, the lack of state ownership policies and main bodies for enforcing adjustment is also an important reason. In the future, the adjustment direction of state-owned capital distribution is very clear. The key is to follow the characteristics of state-owned capital, and establish the mechanism of distribution adjustment at the industrial level higher than physical enterprises.

Key words: state-owned capital, distribution, adjustment