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Exercising ownership rights in state owned enterprise groups : what China can learn from international experience (Inglês)

This paper addresses the question of how the Chinese state could exercise its ownership rights in large state owned enterprises in a more effective way, by drawing lessons from relevant international experiences. Since large state-owned enterprise groups share the same institutional framework of state assets management system with other SOEs, the policy recommendations of this paper may have broader applicability. The paper is organized as follows. In section I, the institutional challenges of exercising state ownership rights in China's SOEs, and past efforts of reform are highlighted. Section II presents relevant international experiences, and, key policy recommendations appear in section III. Exerting effective governance over China's many large SOEs will itself be a huge challenge. Continued diversification of share ownership is highly desirable, thus the Government should be ready to reduce the State share in many large SOEs to 51% or less. Even with only a minority shareholding, methods for protecting vital strategic interests can be found or developed. Moreover, worldwide experience shows that reasonably independent boards lead to stronger SOEs, suggesting the composition of boards for China's large SOEs should strike a balance between independent perspectives, and liaison with the State shareholder.


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    Mako, William; Chunlin Zhang;

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    Documento de Trabalho

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    Leste Asiático e Pacífico,

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    Exercising ownership rights in state owned enterprise groups : what China can learn from international experience

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