MBO of Chinese State-Owned SMEs: Fate and the Way Out

Abstract

While approval for MBO of large-scale enterprises has been suspended, MBO of the state-owned SMEs has set off a new round of MBO wave. Chinese primary state-owned and collective SMEs unify management rights and ownership through the implementation of MBO, with property rights being clear to the natural person of the management level and the reform being of certain spontaneity. However, the state-owned SMEs have such widespread problems as unperfected law system, narrow financing channels and inadequate information disclosure in the process of implementation. Based on the status, problems and cause analysis of implementation of MBO in Chines state-owned SMEs at this stage and aiming at the law, financing, pricing, information disclosure and other issues within, this paper puts forward countermeasures and suggestions related to further improving MBO of Chinese SMEs.