The three-year action ended with the securitization of state-owned assets

Beijing, 6 Jan (Xinhua) -- On 6 January, the China Securities News published an article entitled "The Three-Year Action Ends with the Fast Pace of State-Owned Asset Securitization." According to the article, China Mobile landed on A-shares on the 5th, opening the curtain on the asset securitization of central enterprises this year. Industry insiders pointed out that as the three-year reform of state-owned enterprises enters the final year, all localities will accelerate the promotion of state-owned asset securitization, and promoting the landing of strategic emerging industry enterprises in the capital market will be one of the priorities.

(Photo caption) Information photo, issued by Xinhua News Agency

(Subtitle) The listing of central enterprises set off a climax

On January 5, China Mobile officially landed on A-shares, and so far, the three major operators have achieved A+H-share listing.

At the same time, the securitization of assets in the fields of electric power and military industry is also further accelerating. On June 10, 2021, Three Gorges New Energy was successfully listed, and on September 28, 2021, China Energy Construction successfully returned to A-shares by means of share swap absorption and merger. Some institutions pointed out that at present, the asset securitization rate of China Energy Construction and China Power Construction is more than 90%, the asset securitization rate of China Three Gorges Group, Datang Group and National Energy Investment Group is more than 50%, while the asset securitization rate of the two major power grid companies is relatively low, and it is expected to accelerate the improvement in the future.

In the field of military industry, from the reorganization of Xiyi shares by China North Industries Group to the integration of China State Shipbuilding Group's wind power and power business, the asset securitization of the two major groups is also accelerating. "Recently, the asset securitization of central military enterprises has accelerated." Zhang Chao, chief analyst of the military industry at AVIC Securities, believes that 2022 is the last year of the three-year action plan for the reform of state-owned enterprises, and all military industry groups have proposed to accelerate the implementation of the three-year action reform task, and improving the asset securitization rate is an important task.

In addition, the securitization of railway assets is also poised to break through. At the work conference of China National Railway Group held on January 4, Lu Dongfu, chairman of the board of directors and secretary of the party group of the State Railway Group, said that in 2022, it will further promote the capitalization, equity and securitization of railway assets; promote the restructuring of qualified enterprises to reform and list shares, pilot the issuance of infrastructure REITs, study the capital operation plan of existing listed platforms, and formulate guidance on improving the quality of listed companies held by state railways.

According to the data provided by Zhiben Consulting, in 2021, there will be 22 listed companies controlled by central enterprises listed on the A-share market, an increase of 120% year-on-year.

"The acceleration of the listing of central enterprises is expected." Song Xiangqing, vice president of the Institute of Government Management of Beijing Normal University, said that this is not only an important symbol of the results of mixed reform, but also the need to accelerate the overall optimization of the layout of central enterprises. In the future, the listing of most central enterprises is expected to become a reality, and the securitization of state-owned assets will become the norm in the capital market.

Accelerate the securitization of state-owned enterprise assets

Local state-owned assets have also actively promoted securitization, and many provinces have clarified the listing goals of local state-owned enterprises. According to zhiben consulting data, in 2021, there will be 38 local state-owned enterprises listed on the A-share market, an increase of 80.95% year-on-year. Listing forms include IPOs, spin-offs, backdoor listings, and overall listings. On December 16, 2021, Property Environmental Energy was listed, becoming the first "main board split main board" spin-off and listing enterprise in the A-share market, and the first successful spin-off and listing project of state-owned state-owned enterprises in Zhejiang Province.

From the perspective of local deployment, many places have clearly put forward the goal of state-owned asset securitization. For example, in August 2021, Shandong Province issued the "14th Five-Year Plan for the Reform and Development of Provincial State-owned Assets and State-owned Enterprises in Shandong Province", which proposes to increase the level of capital securitization during the "14th Five-Year Plan" period, and the asset securitization rate will reach 70%. We will vigorously promote the realization of multi-local and multi-level initial listing of all types of enterprises at all levels, continue to promote the overall listing of the main business of qualified provincial enterprises, support enterprises to merge and merge listed companies in a market-oriented manner based on the main business, and support qualified state-owned listed companies to implement spin-off and listing. Shenzhen has made it clear that by 2022, the securitization rate of municipal state-owned assets will increase to more than 60%.

Wang Na, chief expert of the state-owned capital investment company of Zhiben Consulting, said that in the future, the asset securitization of local state-owned enterprises will be accelerated, and local state-owned enterprises will pay more attention to cultivating a number of high-quality mixed reform listed enterprises.

Support the listing of enterprises in strategic emerging industries

"With the in-depth advancement of the three-year reform of state-owned enterprises, landing in the capital market has gradually become the key direction for accelerating the reform of state-owned enterprises." Wang Na thinks. It is worth noting that thanks to the strong support of the policy, since 2021, many of the state-owned enterprises that have been listed for the first time have come from strategic emerging industries such as new energy, energy conservation and environmental protection, and science and technology.

The "Guiding Opinions on Promoting the High-quality Development of Central Enterprises and Doing a Good Job in Carbon Neutralization" recently issued by the State-owned Assets Supervision and Administration Commission proposes to encourage central enterprises to accelerate the development of a new generation of information technology, biotechnology, new energy, new materials, high-end equipment, new energy vehicles, green environmental protection, aerospace, marine equipment and other strategic emerging industries. Support eligible green and low-carbon industry enterprises to go public for financing and refinancing. Officials of the State-owned Assets Supervision and Administration Commission have previously made it clear that a number of "sharp soldiers" of scientific and technological innovation of central enterprises will be promoted to be listed on the science and technology innovation board to enhance the ability of independent innovation.

Li Jin, chief researcher of the China Enterprise Research Institute, believes that through asset securitization, promoting the concentration of more state-owned capital in listed companies can greatly improve the liquidity and value appreciation ability of state-owned capital. The implementation of the registration system can provide direct financing channels for enterprises better and more perfectly. In the future, with the continuous improvement of the multi-level capital market, state-owned enterprises in strategic emerging industries such as new energy will become an important force for listing.

"In the future, the listing of strategic emerging industry enterprises will be accelerated." Song Xiangqing said that the development of strategic emerging industries will become an important strategic support for China's economic transformation, and encouraging strategic emerging industry enterprises to go public for financing is conducive to promoting independent innovation, promoting the orderly development of the industry, promoting the upgrading and upgrading of enterprise-related technologies, and strengthening technology research and development and talent reserves. (End)