Beijing, March 24 (Xinhua) -- The China Securities Journal published an article on Thursday titled, "A New round of state-owned enterprise reform is planned in Central China." 'A new round of SOE reform and upgrading is ready to take off,' the article said. China Securities Journal reporters recently learned that relevant action plans are currently under intense research and development. Many central enterprises and local governments are planning a good "first hand chess". Restructuring and integration, mixed reform and listing, value creation have become three key words.

Industry insiders believe that with the launch of a new round of state-owned enterprise reform, accelerated adjustment of state capital structure, continuous improvement of market-oriented operation mechanism, development quality and efficiency are expected to further improve, and the revaluation of state assets will be natural.

A number of central soes have clarified new ideas for reform

New journey, start again. Recently, a number of central enterprises disclosed a new round of reform ideas.

Central military enterprises have taken the lead. Recently, China Aerospace Science and Technology Corporation, China Aerospace Science and Industry Corporation and North Equipment Group held a meeting of the leading group of comprehensively deepening reform, actively deployed a new round of state-owned enterprise reform, and studied and formulated reform action plans.

China Aerospace Science and Technology Corporation pointed out that focusing on improving soes' core competitiveness and enhancing their core functions, focusing on enhancing soes' industrial control, scientific and technological innovation, and safety support, promoting the optimization of state-owned economic layout and structural adjustment, and improving key reform areas such as modern corporate governance and market-oriented operation mechanism of state-owned enterprises with Chinese characteristics. We will make overall plans for our work and reform measures to deepen and upgrade the reform of state-owned enterprises, and continue to make the reform more systematic, integrated and coordinated.

Ornance Equipment Group pointed out that it would make good use of the "key move" of reform, focus on industrial control, scientific and technological innovation, and safety support, adhere to the problem-oriented, target-oriented, result-oriented, and focus on improving core competitiveness and enhancing core functions, seriously plan to carry out a new round of deepening and upgrading actions of state-owned enterprise reform, and promote the reform to continuously make new breakthroughs and achievements. We will accelerate the development of world-class science and technology enterprise groups.

In addition, Yuan Jie, secretary of the Party Group and chairman of China Aerospace Science and Industry Corporation, said recently that to speed up the improvement and implementation of the group's new round of reform deepening and upgrading action work ideas and measures, in accordance with the deployment requirements of superiors on state-owned enterprise reform, timely research and formulation of reform action plans.

Reform actions related to central enterprises in steel and engineering construction are also in the pipeline. Dai Zhihao, general manager of Angang Group, introduced that in the next step, it will undertake the implementation of a new round of work arrangement for deepening the reform of state-owned enterprises by the State-owned Assets Supervision and Administration Commission, study and formulate the Action Plan for Deepening Reform of Angang in the New Era, focusing on the aspects of "corporate governance and group control, market-oriented operation mechanism, industrial layout optimization and structural adjustment", clarify the work objectives, refine and decompose tasks, and forcefully promote the implementation. The reform "key move" to promote the high quality development of Angang Steel.

The first 2023 meeting of the Leading Group for comprehensively deepening Reform held recently by China Chemical Engineering Group pointed out that a new round of actions to deepen and improve the reform of state-owned enterprises should be organized and carried out to highlight value creation, scientific and technological self-improvement, deepening reform and optimizing layout.

"The new round of state-owned enterprise reform has a higher position, a larger structure and a more urgent task." Li Jin, chief researcher of the China Enterprise Research Institute, believes that the new round of reform will take the Chinese-style modernization as the guiding ideology, focus on improving enterprises' core competitiveness and enhancing core functions, take the building of a modern industrial system as the theme, and feature industrial leadership, scientific and technological innovation, safety support, corporate governance and coordinated development. The coordinated development of safety and enterprises of all owntypes has been included in the reform of state-owned enterprises.

The reform of local state-owned enterprises is gaining momentum

The spring tide surges and the wind rises. A new round of potential energy for state-owned enterprise reform is brewing and bursting everywhere.

"Our province will take a new round of actions to deepen and upgrade the reform of state-owned enterprises, formulate a five-year action plan for the high-quality development of provincial state-owned enterprises, and carry out ten special actions to improve the 'first-class standard', 'tackle and break through' key core technologies, 'strengthen the tendon and strengthen the bones of the industrial chain,' connectivity 'of the iron and water corporation and air corporation, and' upgrade 'the supply chain logistics system. Strive to comprehensively improve the innovation ability, industrial development ability and core competitiveness of provincial enterprises." Hubei Province SASAC relevant person said recently.

Hubei Province will vigorously support Hubei Investment Group, Hubei Lianinvestment Group, Zhongnan Construction Institute and Xingfa Group to build world-class enterprises, accelerate the listing of a batch of reserve "golden seed" enterprises such as Hubei Bank and Hubei Tourism Group, and deepen the comprehensive reform experiment of regional state-owned assets and state-owned enterprises in Wuhan, Hubei Province.

The relevant person in charge of Liaoning State-owned Assets Supervision and Administration Commission said that in the next three years, the state-owned assets and state-owned enterprises system of Liaoning Province will carry out the three-year action of deepening and upgrading the reform of Liaoning state-owned enterprises. According to the introduction, Liaoning Province focuses on building a number of large state-owned enterprises with industrial control, scientific and technological innovation and safety support, and will continue to deepen reform and improve core competitiveness. We will modernize the governance of state-owned enterprises, put in place a system of operational responsibility with adequate constraints, and improve a more flexible and efficient income distribution mechanism. We will deepen mixed-ownership reform by taking listing as the main channel, improve the systems and mechanisms for diversified scientific and technological innovation, and carry out breakthroughs in key and core technologies and the commercialization of scientific and technological achievements.

In addition, Beijing Municipal State-owned Assets Supervision and Administration Commission is studying and formulating policies and measures to encourage enterprises to go public, focusing on promoting "specialized, specialized and innovative" enterprises to go public in Beijing Stock Exchange, supporting qualified listed companies to split and list, and promoting high-quality asset injection. Anhui State Assets Supervision and Administration Commission said it will continue to plan and implement a number of key strategic restructuring and professional integration projects, solid progress in port, shipping, coal, electricity, grain and other resources integration. Qingdao in Shandong Province proposed to actively promote the mixed reform at the subsidiary level, accelerate the pace of listing, and increase the proportion of assets securitization of state-owned enterprises.

Chang Yanjun, director of the State-owned Enterprise Property Rights Research Institute, a consulting company, believes that focusing on building world-class group enterprises and creating world-class "specialized and innovative" enterprises, the restructuring and integration of state-owned enterprises will open a new voyage. In terms of mixed reform, focus on strategic emerging industries, industrial mixed reform will speed up. In addition, in the future, it is the general trend for more A-share state-owned listed companies to promote asset reorganization and mixed reform through spin-off and listing.

State-owned enterprise valuations could be reshaped

As the reform of state-owned enterprises enters a new stage, the market calls for reconstructing the valuation system of state-owned state-owned enterprises are increasingly strong.

"We need to integrate our actions to create value with our reform and development efforts, plan, advance and implement them in one place, and firmly promote high-quality development of enterprises, speed up the building of world-class enterprises, and firmly become a strategic force serving the new development pattern and promoting Chinese-style modernization." China National Chemical Group Party Secretary, chairman Dai Hegen said recently.

The relevant person in charge of National Machinery Group recently pointed out that the group will be based on value creation, committed to lean operation to enhance the internal value of listed companies. By means of value release, long-term capital is introduced to support the business development of listed companies, promote the connotative development of listed companies, and create listed companies with clear strategy, outstanding main business, standardized governance, excellent performance and strong core competitiveness. Explore the value realization factor into the performance evaluation system of listed companies, and establish a performance evaluation system of listed companies with national characteristics.

"Compared with five years ago, although state-owned listed companies account for the majority of listed companies in terms of revenue, profits and dividends, the price-earnings ratio and price-to-book ratio are significantly lower than the average level of listed companies, so it is necessary to increase the market value of state-owned listed companies." China Listed Companies Association President Song Zhiping recently said.

Gao Ruidong, chief macro economist of Everbright Securities, believes that A new round of state-owned enterprise reform will be launched, which will further improve the profit quality of A-share state-owned enterprises listed companies. The proposed valuation system with Chinese characteristics is also expected to further improve the valuation level of state-owned enterprises. Under the resonance of the two, the revaluation of state-owned enterprises this year will usher in new opportunities.

In order to reconstruct the valuation system of state-owned enterprises, Gao Ruidong believes that long-term mechanism construction of the capital market should be promoted, investor structure should be optimized, and medium - and long-term funds should be guided into the market. We will introduce strategic investors, promote the strategic restructuring and professional integration of state-owned enterprises, and improve operational efficiency. We will strengthen the management of investor relations, improve the profit distribution mechanism, and optimize shareholder returns through dividends and buybacks. In addition, the central state-owned enterprises shoulder the responsibility of "science and technology innovation national team", innovative state-owned enterprises will be more growth.

Source: State-owned Assets Supervision and Administration Commission of the State Council