The scale of overseas assets exceeds trillions of trillions. State-owned Assets Supervision and Administration Commission brewed and regulated the overseas property rights of central enterprises.

As the state-owned enterprises accelerated their steps to purchase resources overseas, the SASAC is stepping up efforts to formulate overseas property rights management plans.

On May 11, the reporter learned from Chinalco, Minmetals, Wuhan Iron and Steel Group and China Steel Group that the deputy director of the SASAC, Li Wei, led a delegation to Australia recently to conduct management on the status quo of overseas enterprises and the local legal and regulatory systems of the above enterprises. Investigation and research.

At the symposium with Chinese companies such as Chinalco, Minmetals, and Wuhan Iron and Steel on their central offices in Macao, Li Wei pointed out that with the implementation of the “going out” strategy, the scale of overseas assets of central SOEs has been expanding, and strengthening the management of overseas property rights has been on the agenda. It is necessary to study and formulate measures for the management of overseas foreign property rights as soon as possible.

Li Wei stated that in 2009, SASACs at all levels will increase the research on overseas property rights management. The SASAC will also strive to introduce guidance on the management of state-owned property of overseas enterprises during the year, implement the responsibility system for overseas property rights management, and obtain timely overseas control. State-owned property rights dynamics.

Lu Youqing, deputy general manager of Chinalco, told this reporter: “For overseas asset management, the most important thing is to unify the management and prepare for risk prevention and financial cost control.”

Xing Houyuan, director of the Multinational Management Research Department of the Ministry of Commerce and director of the Overseas Investment Research Center, told this reporter: “In recent years, as China's state-owned enterprises have stepped up their pace of “going out”, they have formed rough estimates of foreign countries with a trillion-dollar scale. Property rights.” At present, the Ministry of Commerce and other relevant ministries and commissions attach great importance to the management of overseas property rights of central enterprises, and the Ministry of Commerce will jointly develop a set of training materials on transnational operations jointly with the Ministry of Foreign Affairs.

Xing Houyuan also stated that in order to strengthen the security management of overseas property rights, when the Ministry of Commerce examines and approves foreign investment projects, it no longer focuses on operational feasibility and asset status, but mainly examines the risks of overseas projects, such as political relations between the two countries and foreign investment environment. With related laws and so on.

Foreign companies are prone to "bleeding points"

According to SASAC's investigation of the overseas enterprises of the central and overseas enterprises in Australia and Singapore, the current overseas property rights management system of central enterprises is not perfect, there is a disorderly competition in overseas investment, lack of management personnel, the assessment system needs to be improved, and the remuneration package of the dispatched personnel. At the same time, due to the financial crisis, the economies of Australia and Singapore continue to decline, and demand has shrunk. The production and operations of overseas institutions face certain difficulties.

Li Wei pointed out that because of historical reasons and differences in the legal systems and national conditions of foreign countries or regions, there are many ways for state-owned enterprises to invest abroad, and some have also adopted the case of entrusting individuals to invest. Therefore, overseas companies have the problems of complex property rights, multiple operations, unregulated management, and inadequate supervision, which are easy to form the “bleeding point” of state-owned assets.

Wang Hengyan, senior investment commissioner of the Australian Trade Commission Greater China, said: "Large state-owned enterprises generally have a multi-tiered enterprise structure. Therefore, the underlying state-owned enterprises in the bottom have become wholly foreign-owned or holding companies, making it easy to be a manager in the business. ."

Xing Houyuan also stated that the stocks of overseas assets are diversified, including equity, mining rights, etc., and ownership of ownership is becoming more and more complex, which also means that overseas asset management is more difficult.

"For a long time, the central enterprises have had difficulties in managing overseas subsidiaries. In recent years, due to the failure of parent companies to oversee the supervision of overseas subsidiaries, there have been serious problems of the loss of state-owned assets and violations of laws and regulations," said Xing Houyuan.

Liu Tao, a macroeconomic analyst in Shanghai, also pointed out that there are multiple “entrusted agency” phenomena in the process of the management and operation of China’s central SOEs. The central state-owned enterprises are agents of the SASAC, and there are multi-level agents within the central enterprises. Any one of these links is not strict, will give rent-seekers with opportunities from fat.

An Australian government representative in China, who declined to be named, told reporters that in Australia’s hot mining resources, Chinese companies still need to improve on loan, finance and personnel management. "The loss is there, and sometimes it conflicts with the local people."

The above-mentioned sources further stated that: “The problem of China’s overseas property rights is rooted in the fact that companies have insufficiently researched foreign investment environments and investment targets.”

It is understood that in 1992, Shougang spent US$118 million to purchase Peruvian Iron Ore Co., Ltd., and in the absence of understanding of the local investment environment, it signed up to 35 welfare clause agreements with the trade union organizations of enterprises, which paid a high price. cost.

Basic management ideas

Li Wei stated that in 2008, the State-owned Assets Supervision and Administration Commission of the State Council organized a research project on overseas foreign property rights management, and conducted investigations on the state of overseas investment and property management of some central enterprises, and had basic ideas for overseas property rights management. Some local SASACs also actively explored and studied solutions, and achieved phased results. At present, Shandong, Hebei, and other places have issued regulations on foreign-owned assets.

At the meeting, Li Wei emphasized the basic idea of ​​overseas foreign property rights management: “As the responsibility entity of overseas property rights management is a group company, relevant working procedures and accountability mechanisms should be clarified. The formulation of measures is not for the management of death, nor is it to be implemented in a one-size-fits-all manner. Consider factors such as country, industry and company nature to better promote the central enterprises' further 'going out' and realize the maintenance and appreciation of state-owned assets.

Li Wei also warned companies in Australian institutions that they should strictly abide by local laws and regulations, adhere to laws and regulations, and prevent and reduce various risks.

Xing Houyuan said: “First of all, we must strengthen the cultivation of overseas talents. Chinese companies go overseas to invest faster than talents. Second, we must adhere to the legal management. I hope that China will soon have a special offshore investment law.”

In terms of financial management, Xing Houyuan said: “The pro-brother must clear the accounts. Therefore, the parent company must clearly calculate the cost of overseas subsidiaries and implement a transparent financial management system.”

Xing Houyuan also said: “In terms of overseas investment, China does not have a constant victory. Citic Pacific is a lesson. Ultimately, success depends on a comprehensive risk prevention system. On the one hand, the government needs to make companies have laws, and the other On the other hand, the companies themselves must have strong management capabilities. In addition, our export insurance companies can also play a role in this."

Explore new models

The reporter learned from Chinalco that at the beginning of April, the SASAC had twice convened 12 central enterprises such as aluminum and Minmetals to convene overseas property forums to discuss new models for overseas property rights management of state-owned enterprises. At the meeting, Lu Youqing gave a special report on Chinalco’s overseas asset management.

Lu Youqing told reporters: “Chinalco started large-scale overseas investment in 2007 and 2008. In 2007, Chinalco Overseas Holdings Co., Ltd. was established in Hong Kong and specializes in overseas investment, development and trading of non-ferrous metals. Assets were managed in a unified manner; in addition, Chinalco also established Chinalco Canada Holdings Co., Ltd. in Canada, which is responsible for the specific implementation of the bid for the acquisition of the entire equity of Peruvian Copper Company of Canada, and it is the main shareholder of the acquisition of Canadian Peruvian Copper Company.”

Lu Youqing introduced that in the personnel dispatch of overseas companies, important management personnel are all dispatched by the parent company. For example, “the group has a deputy general manager in the Peruvian copper company, and also set up a representative office to specialize in Peruvian copper asset management acquired by Chinalco”. In addition, “the financial controller of overseas companies is all appointed by the headquarters”. .

In terms of financial management, Chinalco’s “overseas companies’ financial statements have been consolidated with the parent company, including physical assets, shareholdings, mineral rights, intangible assets, etc. The parent company has conducted special management, and the budgetary costs have been unified by the parent company”.

In the enterprise management system, Chinalco's "overseas company's management model is the same as that of the parent company. The parent company implements vertical management of overseas subsidiaries, but laws, regulations, and accounting standards are enforced according to the location of the assets."

In addition, Wang Hengyan also suggested that China’s large-scale state-owned enterprises’ overseas acquisitions should be “renewed”, and should not be held for the purpose of holding and owning resources. “Controlling is not the best way. Not only is the likelihood of success diminishing, but the success of the acquisition will be affected. The management of acquired resources has aroused the resentment of the local people or the government. It is better to have 5% to 10% of shares and to gradually expand after gaining investment experience.”

In Wang Hengyan's view, the investment methods of central enterprises such as Wuhan Iron and Steel and China Steel have gradually matured, but overall, the management of Chinese companies’ overseas property rights is still in the “learning stage”.

Wuhan Iron & Steel has adopted a "progressive" investment approach to overseas acquisitions. On May 11th, Bai Fang, director of propaganda department of Wuhan Iron and Steel Group, told the reporter: “The overseas mines that WISCO has just invested in this year will first invest some of the money. If the development is good, they will continue to invest, which can reduce investment risks.”

Minmetals is also an eye-catching member of the “going out” team of central SOEs and is forming an independent overseas financing platform through acquisitions, trying to promote the “integration of industry and finance” of overseas assets. On April 17, when Li Wei visited Minmetals to inspect financial management, he pointed out: “I hope the Minmetals Finance Company and the financial sector will continue to adhere to compliance management, further increase the degree of capital concentration, and bring into play the synergies between production and finance.”