By Xiao Qingwen　

Date: 2004/02/04

Abstract:　　

The true value of the SOEs in question must be first determined in the restructuring process. The nominal value of the state-owned asset on the book does not represent the true value of an enterprise. More comprehensive and genuine information should be provided to relevant agencies to make the restructuring more transparent. The restructuring cost should be deducted from the enterprise value as the basis to conduct equity transfer. Clear up the cost of restructuring will help a better pricing of the stock transferred. It will be preferable to take advantage of the policy "shifting debt into stocks" and "turning stocks into debt" to diversify the share holding of the enterprise. The responsibility of the capital providers should be materialized to push forward the process of restructuring. As required by the new state-owned asset management system, the capital providers should be made the main responsible party in restructuring the SOEs. The approval procedures should be simplified when the capital provider is in place.