By Li Zhaoxi　

Date: 2004/12/2

Abstract:

The OECD considers that improving the governance of the State Owned Enterprises is an important public policy target. One prominent issue is to separate market regulations and monitoring from the ownership. The drafting of "Guidelines on Corporate Governance of State-Owned Assets" is to overcome soft budget constrains, clarify the trust responsibilities in a long principal-agency relationship, focusing on the State as the owner in terms of main characteristics and elements in policy. Internal ownership function of the government is introduced, which is considered supplementary to corporate governance principles formulated by OECD, and these guidelines deserve our study.