Since July 2014, the State-owned Assets Supervision and Administration Commission of the State Council has identified three batches of 19 pilot enterprises of state-owned capital investment companies at the level of central enterprises, and China Baowu was included in the second batch of pilot enterprises of state-owned capital investment companies in 2016. In the past 6 years, China Baowu has actively promoted the reform of institutional mechanisms, built and continuously improved the governance system with Chinese Baowu characteristics, especially in optimizing the layout of state-owned capital, enhancing industrial competitiveness, carrying out joint restructuring, green and low-carbon demonstration, industrial chain and ecosystem construction. After a comprehensive assessment of the pilot reform of state-owned capital investment companies by the State-owned Assets Supervision and Administration Commission of the State Council, China Baowu was officially transformed into a state-owned capital investment company a few days ago due to "accurate functional positioning, outstanding capital operation capabilities, and remarkable results in layout and structural adjustment".
The official transformation of China Baowu into a state-owned capital investment company not only marks the successful transformation of China Baowu to strengthen the main business and industry leadership as the mission, which is of landmark significance for its development, but also indicates that China Baowu leads the Chinese steel industry to deeply participate in the international division of labor, promote the healthy and stable operation of the global steel industry chain, and is also of great significance in the history of the development of the global steel industry.
Deeply understand the connotation of state-owned capital investment companies
Since the reform and opening up, the mainland's economic system has shifted from a planned economy to a market economy, and in order to comply with the new requirements of the development of the times, the Third Plenary Session of the Eighteenth Central Committee of the Communist Party of China has opened a new round of state-owned enterprise reform, promoted the transition of state-owned assets supervision methods from "managing assets" to "managing capital", proposed for the first time "the establishment of a number of state-owned capital investment companies", and successively introduced guiding policies on the reform of state-owned capital investment companies. The Party Central Committee and the State Council promulgated the Guiding Opinions on Deepening the Reform of State-Owned Enterprises, issued 22 supporting documents, formed a "1 + N" policy system, and built "four beams and eight pillars" for the reform of state-owned enterprises in the new era.
In July 2018, the State Council issued the Implementation Opinions on Promoting the Pilot Reform of State-Owned Capital Investment and Operating Companies (hereinafter referred to as the Opinions). The "Opinions" pointed out that state-owned capital investment and operation companies are wholly state-owned companies that perform the duties of state-owned capital contributors within the scope of state authorization, and are professional platforms for the operation of state-owned capital markets. The company independently carries out the operation of state-owned capital on the basis of capital as the link and on the basis of property rights, and does not engage in specific production and operation activities. State-owned capital investment and operation companies exercise shareholder duties over the enterprises they hold, safeguard the legitimate rights and interests of shareholders, bear limited liability up to the amount of capital contribution, and earnestly undertake responsibilities such as optimizing the layout of state-owned capital, improving the operational efficiency of state-owned capital, and realizing the preservation and appreciation of state-owned assets in accordance with the principle of corresponding responsibilities and rights.
The purpose of the establishment of the state-owned capital investment company is to "reform the authorized operation system of state-owned capital, improve the state-owned asset management system, realize the separation of state-owned capital ownership from the right to operate enterprises, and implement the operation of state-owned capital markets"; at the same time, "with the goal of serving the national strategy, optimizing the layout of state-owned capital, and enhancing industrial competitiveness, in important industries and key areas related to national security and the lifeline of the national economy, in accordance with the requirements of the government's determination of the layout and structural optimization of state-owned capital, mainly to hold the strategic core business." Through investment financing, industrial cultivation and capital operation, we will give play to the role of investment guidance and structural adjustment, promote industrial agglomeration, resolve excess capacity and transformation and upgrading, cultivate core competitiveness and innovation capabilities, actively participate in international competition, and strive to enhance the control and influence of state-owned capital."
The significance of China's Baowu "regularization"
First, the country has chosen China's Baowu. Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the mainland has entered a new stage of development, and the state is committed to implementing the new development concept, building a new development pattern, and promoting high-quality development. China Baowu development vision and national mission is closely related, for the industry, not only plays a pillar role, but also the chain is long, coverage is wide, China Baowu "normalization" conforms to the national development stage, is the trend of the times.
Second, the times chose China's baowu. The reform of state-owned capital investment companies is an important part of the "three-year action of state-owned enterprise reform" in succession to the reform of state-owned assets and the reform of state-owned enterprises. The reform of state-owned enterprises requires enterprises to focus on building a new development pattern and play a greater role in implementing the national innovation-driven strategy, improving the development of the industrial chain and serving the real economy. China Baowu closely follows the national strategy of serving, deepens the reform of internal management system and mechanism, realizes enterprises to become bigger and stronger, and promotes the competitiveness of China's steel industry, which is the requirement of state-owned assets reform, which is conducive to increasing the degree of authorization and decentralization of enterprises, deeply stimulating the vitality of enterprises, and promoting the development of enterprises, which is to keep pace with the times.
Third, the industry has chosen China Baowu. The layout of state-owned capital investment companies should be required by "strategic security, national economy and people's livelihood, and public services"; they are "special soldiers" in optimizing the layout of state-owned capital, practitioners and pioneers in the reform of central enterprises, and have made tremendous achievements in the reform of state-owned enterprises. In terms of development strategy, China Baowu not only has an industrial investment company with industrial integration and development as the main goal, but also has made outstanding achievements in the "one base and five yuan" industrial chain, and has a strong financial attribute, covering securities, banks, securities funds, trusts, insurance, guarantees, futures, financial companies, financial leasing, etc., with a relatively complete financial service chain. The further development of the steel industry chain requires a financial investment platform, and the development of the financial industry also needs to be combined with the physical industries such as the steel industry chain to achieve the combination of industry and finance, mutual assistance and mutual benefit.
Fourth, the call of duty has called China's treasures. The state-owned capital investment company is not a state-owned enterprise or a central enterprise in the simple sense, it shoulders the national mission, has the status of the industry, bears regional responsibility, and the strategy it lays out is the top of the industrial chain. Through the promotion of the cultural identity of "one Baowu", the new mode of "one headquarters and multiple bases" management and control, the operation concept of "pursuing the ultimate", the industrial layout of "one enterprise and one industry, one industry and one enterprise", the strategic path of "three highs and two modernizations" (high-tech, high efficiency, high market share, ecology and internationalization) and the human goal of "three have (rich, idle and interesting) life", China Baowu has developed into the world's largest steel enterprise group. From integration to integration, China Baowu has established a number of influential professional companies and platforms, built a three-level management structure of "separate operation and hierarchical management", and formed a scientific and standardized governance system of "Baowu Governance". Now transformed into a state-owned capital investment company, China Baowu has a higher mission, which is conducive to strengthening the construction of industrial ecosystem and creating a world-class great enterprise.
Difficulties and challenges faced after "regularization"
After China Baowu officially transforms into a state-owned capital investment company, the pattern of enterprise development, the environment it is in, the mission it undertakes, the decision-making control mode and talent capacity building will change, and the difficulties it faces mainly include the following aspects:
First, a broader international perspective is needed. The long-term downturn in the global economy, coupled with the changes in the pattern of interests between countries in the global production network, has led some countries to implement the "anti-globalization" policy, and the normalization of epidemic prevention and control has adversely affected global economic and trade exchanges and industrial chain supply chains, and the uncertainties in the external environment have increased. Under the new development pattern with the domestic cycle as the main body and the domestic and international dual cycles promoting each other, China Baowu needs to open its vision and actively go out, which will undoubtedly increase the difficulty of enterprise operation.
Second, there is a need for more flexible economic response capabilities. At present, the downward pressure of the domestic economy has increased, affected by the new crown pneumonia epidemic, the contact consumption has been greatly negative impact, coupled with the reduction of income caused by the employment dilemma, the lack of effective supply and other issues, so that the weak consumption of residents is extremely serious, coupled with the decline in investment exports, the phenomenon of strong total demand driving economic growth in the past period of high economic growth is difficult to reproduce.
Third, there is a need for stronger industrial chain management capabilities. A series of problems such as insufficient raw material security capacity in the steel industry, high pressure on low-carbon environmental protection, intelligent manufacturing level to be improved, and rising labor costs have put forward new challenges to the transformation and upgrading of China's Baowu, which need to be solved from the perspective of investors in the industrial chain and using capital means.
Fourth, a more stable investment and business philosophy is needed. Since the steel industry belongs to the heavy asset industry and has strong industrial attributes, China Baowu focuses on the production, operation and management of steel and other industries. The state-owned capital investment company is mainly strategic investment, and the operation mode is mainly through investment in the industry to own equity, and to operate and manage the assets held. At the same time, through the combination of industrial capital and financial capital, capital operation, corporate restructuring, mergers and acquisitions and other activities are carried out. The original heavy production management mode and the capital management method are quite different, which increases the difficulty of changing the business philosophy of the enterprise.
Fifth, a more scientific and efficient governance system is needed. Since the state-owned capital investment company independently carries out the operation of state-owned capital on the basis of capital as the link and on the basis of property rights, and no longer engages in specific production and operation activities, in the decision-making of foreign project investment, it is necessary to pursue industrial development and capital appreciation, and maximize the return on investment, and the assessment of the shareholding enterprises focuses on the state-owned capital flow and value preservation and appreciation, and the project investment decision-making and risk control requirements are higher. After China Baowu officially transformed into a state-owned capital investment company, it is necessary to further improve the level of project investment management and risk control.
Sixth, more high-end compound talents are needed. After China Baowu was officially transformed into a state-owned capital investment company, the company has higher requirements for the business ability of employees, and the demand for talents familiar with industry and financial business has increased, especially the relative shortage of compound talents who understand both industry and finance, which is an important problem that China Baowu needs to solve.
Suggestions for the future "rule of the treasure"
Looking forward to the future, China Baowu will continue to deeply implement the relevant requirements of the state to deepen the reform of state-owned enterprises, under the framework of the "Baowu Governance" governance system, with capital as the link, through strengthening risk prevention and control and state-owned capital investment and other two kinds of capacity building, enhance the core competitiveness of the main industry, become the global steel and advanced materials industry leader, play an industry-leading role, and jointly build a high-quality industrial ecosystem. In order to accelerate the construction of a world-class great enterprise, the following suggestions are made:
The first is to deepen the governance system of "the rule of baowu". Steadily promote the "one persistence, two aspects, three-tier architecture, four types of system" of China Baowu corporate governance system and governance capacity modernization of the panorama, to create "Baowu governance". On the one hand, it is necessary to further promote the integration of the party's leadership into all aspects of corporate governance, strengthen the construction of the board of directors and implement the powers and powers of the board of directors, ensure that managers exercise their powers and perform their duties in accordance with the law, and form a corporate governance mechanism in which each performs its own duties, assumes its own responsibilities, coordinates operation, and effectively checks and balances; On the other hand, it is necessary to increase the degree of authorization and decentralization, promote the unification of corporate responsibilities and rights, and effectively enhance the status of subsidiaries as market entities. In addition, China Baowu should also carry out in-depth management improvement activities of "comprehensive benchmarking and finding differences and creating world-class", promote the modernization of management system and management capabilities, and improve the control mode of state-owned capital investment companies.
The second is to enhance the competitiveness of the main industry. Focus state-owned capital into the steel manufacturing industry, advanced materials industry, smart service industry, resource environment industry and industrial park industry, optimize the business layout of "one base and five yuan" (based on the steel manufacturing industry, the coordinated development of new material industry, smart service industry, resource and environment industry, industrial park industry, and industrial finance industry), and enhance the scale and competitiveness of the "five yuan" business through professional integration, platform operation, ecological collaboration, and market-oriented development. With the strengthening of science and technology-led "three highs and two modernizations" as the development path, with reform and innovation as the fundamental driving force, comprehensively deepen the benchmarking and find the difference, and continue to enhance the core competitiveness of the industrial chain supported by the coordinated development of "one base and five yuan".
The third is to jointly build a high-quality industrial ecosystem. In accordance with the requirements of state-owned capital layout and structural optimization, give play to the role of investment guidance and structural adjustment, and promote industrial agglomeration and transformation and upgrading. Give play to the leading role of the industry, focusing on promoting the "cornerstone plan" to make up for the shortcomings of the steel industry's resources; Comprehensively promote green and low-carbon development and improve the level of environmental protection and low carbon; Implement mergers and acquisitions to improve industry concentration; Pay attention to key common frontier technologies and enhance the demonstration role of scientific and technological innovation; Give play to the basic role of standard quality and strengthen the supporting role of national quality infrastructure; Develop intelligent manufacturing and realize the transformation and upgrading of the digital intelligence empowerment industry; Accelerate the international layout, better serve and integrate into the new global development pattern.
The fourth is to strengthen risk prevention and control capacity building. Promote the work of "risk prevention, strong internal control, and promotion of compliance". In accordance with the requirements of state-owned asset risk monitoring, establish a major risk monitoring indicator system and management platform, focus on enterprise debt risk, investment risk, legal risk, financial risk, overseas investment and operational risk, etc., and do a good job in monitoring and early warning, identification, assessment, and judgment and disposal of various risks. Improve the daily supervision system, enhance the strength of supervision, and improve the ability of supervision.
Fifth, strengthen the capacity building of state-owned capital investment. In accordance with the relevant requirements of the functional positioning of state-owned capital investment companies, we will earnestly undertake the responsibilities of optimizing the layout of state-owned capital, improving the operational efficiency of state-owned capital, and realizing the preservation and appreciation of state-owned assets. Combined with the actual development of China's Baowu, rationalize the property rights structure of various industrial subsidiaries and steadily improve the efficiency of capital investment and operation.
China Baowu has ushered in a new starting point for "regularization" and a time point for creating an unprecedented grand cause, which has also brought new opportunities to the development of the industry. It is believed that China Baowu will continue to forge ahead and continue to write a new chapter in the new journey of high-quality development of the steel industry chain and industrial ecosystem.
Author | Fan Tiejun (The author is the president of the Metallurgical Industry Planning research institute)
Photography | Gu Xuechao