Chapter 888 (1/2)
Extraordinary Genius
Chapter 888 - Get listed
Feng Yu rubbed his chin and thought for awhile. ”Actually, there is still a solution that might be against theregulations. However, it is definitely useful.
Against the regulations? Zhang Ruiqianghesitated. At his age, he still can move upwards. If he violates any laws, hiscareer might end even if he had achieved results.
But Zhang Ruiqiang thinks again. He mightnot be the one who violates the regulations. Why did the province appoint a.n.a.lmost retired Deputy Provincial Governor to head the state-owned enterprisereforms? The leaders must be worried about this.
If necessary, use extreme measures to solvethis problem, and if anything goes wrong, someone else will be the scapegoat.
”What's the solution? Tell me.”
”Two words, get listed!” Feng Yu smiled andreplied.
”Get listed? You are saying we get listedon the stock market?” Zhang Ruiqiang asked puzzledly. What solution is this?
This brat mentioned about violating theregulations. Does he mean that getting those enterprises listed illegally?
”That's right. The companies can getfinancing after getting listed. Why so many of the state-owned enterprisescannot be reformed? It's because they don't have money. Why can't they developand grow? It's because they don't have good equipment. In conclusion, they haveno money. After getting listed, they will raise enough funds to get newequipment, technology, and repay their debt. They will also have enough moneyto get enough resources. The price they have to pay is only giving out somedividends to the shareholders and lesser authority.”
The capital market is the companies'financing platform, and it's beneficial for the companies' growth and protectsthe country's interest.
State-owned companies' reforms cannot beseparated from the capital market. The funding, reformation and loan model isnot wrong, but it's too limited.
The higher-ups are still very conservativetowards this reform. Especially on the privatization of state-ownedenterprises.
To Feng Yu, rather than letting these state-ownedenterprises depending on the government for funding every year, they shouldsell them to private ent.i.ties. This way, the government can recover some moneyand still get taxes every year, instead of spending money to feed them. What'sthe point of keeping these money-losing state own enterprises?
These are not essential enterprises, andthere's no difference between state-owned and private. For instance, ahandkerchief factory. Why can't the government sell it to a private ent.i.ty?Convert it to a shareholding and then let the state-owned officials interferewith the factory's operation? It will still be the same as before. If there issomeone in the state-owned enterprise who can bring the factory out of theircurrent situation, this factory will not be in this pathetic state.
Those useless leaders in the state-ownedenterprises should be transferred away, demoted, and get salary cuts. Whoeverthat is unhappy, investigate them. None of them are clean in the first place.
But now, the government is still stuck withthese state-owned enterprises. They did sell some state-owned enterprises inthe past, but the civilians and workers felt the state-owned enterprise'sleaders are selling away the government's a.s.sets and have taken benefits fromthe buyer illegally.
Did the leaders really get benefits fromthe buyer? Of course, but not all leaders will get any under table deals. Some leaderssold the state-owned enterprises to solve this problem.
Feng Yu also have to bear someresponsibility for what's happening right now. All the leaders in the provincesaid. Look at Bing City's reformations. Bing City Machinery Company, Bing CityPharmaceutical, etc. After their restructuring, its profits, taxes, and valueincreased, and the city government did not spend much.
Even the big enterprises in Bing City cando this, why can't these small enterprises be successful?
Sometimes, reforming a large enterprise iseasier than changing a small enterprise. Large enterprises are more compet.i.tive,and small enterprises might not even export their products out of the city, letalone the province or overseas.
Zhang Ruiqiang was deep in thoughts afterhearing what Feng Yu said.
Getting listed is a good solution. Afterthe enterprise is listed, it will still be under the government's control. Thiswill stop those people from objecting, and there will be funds to clear thedebts. Most importantly, the government doesn't need to spend money!
”Tell me the details. How are we going todo this?” Zhang Ruiqiang asked.