Beijing's state-owned enterprise reform will release two major highlights

Under the tide of comprehensively deepening the reform of state-owned enterprises, Beijing's reform of state-owned assets and state-owned enterprises is about to break the subject. China Securities Journal reporter was informed on the 27th that the opinions on the reform of Beijing state-owned assets and state-owned enterprises have been approved by relevant departments and are expected to be announced in the near future. The classification and reform direction of municipal state-owned enterprises remains the same, namely, they are divided into three categories: urban public services, special functions, and competition, but the specific company list will be dynamically adjusted. After the opinions are released, reforms such as mixed ownership, state-owned capital management companies, and standardized board construction will be piloted in some companies.

Total assets of more than 2.5 trillion yuan

The functional orientation of the state-owned enterprises in Beijing is beginning to take shape in May this year. Zhang Xianping, deputy director of the Beijing State-owned Assets Supervision and Administration Commission, said at a report on the "Focus on the People's Livelihood in the Reformed People's Livelihood" held in May. According to the special requirements for the development of the capital economy at the present stage, Beijing will classify municipal state-owned enterprises into three categories: It is a city public service category. It mainly requires the provision of public goods or services in public transport, subways, water supply, etc. to ensure the safety of urban operations. Second, it is a special function class that mainly undertakes the special tasks and major projects assigned by the municipal party committee and the municipal government at different stages. Strategic objectives such as government infrastructure, people's livelihood security, and social development; third, competitive enterprises, with the main objective of maximizing capital efficiency, strive to become a company with core competitiveness and brand influence in the same industry at home and abroad. Enterprises are divided into strategic support enterprises and general competitive enterprises.

Regarding the capital distribution of the above three types of state-owned enterprises, the distribution of urban public service state-owned enterprises accounted for 19%, special-function state-owned enterprises accounted for 22.6%, and competitive state-owned enterprises accounted for 58.4%. By 2020, according to the requirements of the Beijing Municipal Government for the development of the “four centers” in the capital, more than 60% of the capital will be distributed among urban public service and special-function state-owned enterprises. Urban public service state-owned enterprises will implement reforms with the separation of government and enterprises, separation of government and capital, franchising, and government supervision. At the same time, they will introduce social capital to participate in urban public utilities investment operations.

Zhang Xianping said that among state-owned enterprises in Beijing, mixed-ownership enterprises accounted for 66% of the total, but basically they were second- and third-tier companies, and the first-tier enterprises did not have mixed ownership. In the next step, Beijing's mixed ownership reform will focus on the first-tier enterprises, promote the diversification of corporate equity, and support joint ventures between municipal state-owned enterprises and central enterprises, Zhongguancun enterprises and district-county enterprises. In addition, speed up the listing of municipal state-owned enterprises, especially competitive enterprises, and promote the overall listing of qualified first-tier enterprises.

According to public information, there are currently 43 first-tier enterprises directly funded by the Beijing Municipal Government, 46 state-owned enterprises listed in the municipality, and a total market capitalization of more than 550 billion yuan; 874 disadvantaged companies have been withdrawn, involving assets of more than 30 billion yuan. As of the end of last year, the total assets of the state-owned enterprises in the city reached 2,251.99 billion yuan, an increase of 16% over the same period of the previous year.

Hard to "bone" more

Shen Meng, executive director of Chanson Capital, said that Beijing’s introduction of state-owned asset reform programs is relatively late. Given the special status of Beijing, there may be more factors to consider than other provinces. On the one hand, the reform of state-owned enterprises in Beijing involves coordination between state-owned assets and central enterprises. The economic structure of Beijing is dominated by the financial services industry, which provides economic contributions to Beijing. Many of the companies are not municipal state-owned enterprises, such as large state-owned banks. The State-owned Assets Reform Council will involve adjustments and changes in Beijing's economic development model. If it is not fully coordinated with the Beijing headquarters of Beijing-based central enterprises and national enterprises, the state-owned assets reform in Beijing may undermine the interests of some local state-owned assets; on the other hand, the state-owned assets also involve Beijing-Tianjin. In terms of integration and cooperation, this may also be an important factor in Beijing's failure to announce reform plans.

Shen Meng said that Beijing shoulders special missions and tasks. State-owned assets and state-owned enterprise reforms will not be as radical as other regions, but they will still push reform as soon as feasible. The historical inertia of Beijing's state-owned assets may be relatively large. At the same time, under the joint action of the development of the headquarters economy, high-tech economy, Beijing-Tianjin-Hebei integration, and the dispersal of capital functions, Beijing’s state-owned enterprises reform ideas and methods and other provinces, districts, and There are fundamental differences in the city. This is not only a question of reform thinking, but also involves the balance of interests of all parties, and the more difficult "bone" will be. After the Beijing version of the state-owned, state-owned enterprise reform plan is introduced, the key is to vigorously promote the implementation of the plan.

Focus on two major highlights

Among listed companies in the A-shares Beijing section, the actual controllers are listed companies in the Beijing Municipal and District SASACs, which are concentrated in the real estate industry, manufacturing industry and retail trade. Among them, listed companies in the real estate industry include Beijing Urban Construction, Electronic City, Jingneng Real Estate, Beichen Industry, First Open Shares, Dalong Real Estate, Financial Street, Airport Shares, etc. Commercial and retail companies include Beijing Chengxiang, Wangfujing, Cuiwei, and the first commerce. Shares and other manufacturing companies include Shougang Group, Tong Ren Tang, Sanyuan Company, Yanjing Beer, BOE A, Jinhao Group, Foton Motor, *ST Jingcheng, Shunxin Agriculture, etc. Public utility companies include Capital Capital and Jingneng Power. Catering and tourism companies include Quanjude and Brigade Hotels, and mining companies have Haohua Energy.

In recent years, Beijing's state-owned assets have increased its efforts to restructure and integrate. For example, Cuiwei Co., Ltd. announced on the 18th that the board of directors of the company has decided to continue the major asset restructuring. The company issued an acquisition plan in December last year and plans to purchase 100% of the shares held by the contemporary mall and 100% of Ganjiakou Building by issuing shares and paying cash to the Haidian State-owned Assets Supervision and Administration Center. The estimated value of the underlying assets is approximately RMB 2.46 billion. Prior to this, Wangfujing and BTG had asset integration, BTG shares, Lufthansa, and Quanjude carried out asset integration, and Beijing Ershang Group, Beijing Aquatic Corporation, and China National Oceanic Corporation merged. Through the integration of assets, the number of state-owned enterprises in Beijing has decreased, the scale of enterprises has expanded, and overall strength has increased.

Shen Meng said that for investors, there are two highlights of the state-owned enterprise reform in Beijing. First, in the process of advancing the reform of mixed ownership, municipal state-owned enterprises have cooperated with Zhongguancun enterprises to transfer Zhongguancun's new economy and industry experience to traditional state-owned enterprises. China and state-owned enterprises have achieved industrial transformation, thereby increasing the competitiveness of state-owned assets in Beijing, which is a distinctive highlight of Beijing; second, with the introduction of state-owned enterprise reform programs, it will stimulate the activeness of mergers and acquisitions in the short-term, Beijing. State-owned assets are expected to receive attention in the capital market.