common phenomenon in our life is that some companies have lost the strength of development, but still continue to exist in the market, which is obviously a waste of social resources. In October 19th, the Jiangsu provincial government held a conference on Reform of state-owned enterprises the supply side, the provincial SASAC made clear, before the end of 2018, fully completed clearing zombie companies; pilot shareholding employees, and the promotion of pilot experience.
with the deepening of structural reform of the supply side, Jiangsu clean out inefficient inefficient assets and zombie enterprises to accelerate the pace. "13th Five-Year" during the completion of renovation or set up at the provincial level 4 – 5 state-owned capital investment company and 1 state-owned capital operating company. By the end of 2018, the full completion of zombie enterprise clearing.
, deputy director of SASAC Li Kun introduction, our province has 7 consecutive years of not conforming to the state capital to invest, is not in general competitive field of the project to clean up and enterprises the main business in recent years, has accumulated to clean up the integration of enterprises and projects nearly 300 households (a). Among them, from January to September this year to complete the cleanup to exit 30 (a). On this basis, in accordance with the closed down, more than three consecutive years of losses and serious insolvency criteria to filter out zombie enterprise, the family, plans to clear all within 3 years. Municipalities within the scope of the Commission ineffective inefficient assets and zombie companies also conducted a thorough combing, the current clean-up work is being orderly exit.
Party’s the third Plenary Session of the 18th CPC Central Committee decision to clear, allowing mixed ownership of economic entities esop. The community is highly sensitive to the rules of employee stock ownership, such as corporate leaders can hold, how to avoid the loss of state-owned assets, such as a series of problems to be solved.
economy wants rapid development, we must put some out of date business out, only in this way the market environment will be more quality, the potential for competition in the market will be greater. The conference made it clear that Jiangsu plans to select 10 enterprises in the province’s mixed ownership enterprises to carry out ESOP pilot, and promote the pilot experience. In an interview with reporters, Li Kun said: Jiangsu encourage enterprises in the field of full competition and industry, and meet the conditions to promote employee stock ownership, and reported to the competent authorities for approval. In view of some drawbacks of previously ESOP appear, the employee stock ownership system reform and more careful design, reasonable, Jiangsu province SASAC is actively implement this policy, at present already the enterprise puts forward the reform intention."