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Failed SOEs Reform Would Generate High Cost

According to the recent central economic working conference, the diversified ownership reform will be the vital breakthrough of SOEs reform, and next year’s key task of this will target on the combination of labour and capital. For ANBOUND, instead of stumbling upon the issue of insider holding, the diversified ownership reform should try other models such as introducing social capital, the "common fund" management model provided by ANBOUND will be a good example. From this point of view, there will be two major directions for the ownership reform, it is important to study that on a micro level, how to revive the SOEs by diversifying ownership; while on a macro level, how to break the monopoly within some industries.

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