Author(s)

Liangbing yang, Qiwei Zhao, Haijia LI

Corresponding Author

Qiwei Zhao

Abstract

Optimization of control structure in mixed ownership reform is of vital importance to improvement of corporate governance, realization of marketization, and improvement of market competitiveness. From August 21, 2017 to February 11, 2018, China Union subsequently published the mixed ownership reform plan, leading to significant changes of its equity structure and board structure, and achieving periodical achievements top down. This paper takes China Union for a case stud. To start with, the introduction method of non-state-owned strategic investors, such as BATJ, and motivation of non-state-owned enterprises, such as Baidu and Alibaba, to join it are introduced. Following that, it is pointed out that the state-owned enterprise mixed ownership reform has been ushered into a new stage, and the policy that transforms enterprise management to capital management has been implemented. Meanwhile, the role of non-state-owned strategic investors in checking and balancing the daily operation decision-making of China Unicom Board of Directors under the condition of above-quota appointment of directors is analyzed. Meanwhile, that the control of state-owned capitals should be maintained when non-state-owned strategic investors are introduced is emphasized at an attempt to promote joint progress of nationals.

Keywords

Strategic investor; above-quota appointment of directors; China Union