The China's state enterprise and private-owned enterprises: Which performance is better?

摘要

With China taking its reform and opening policy, the private economy has been developed rapidly now, especially going public. It is discovered that there are two ways of entering China's stock market: one is direct listing, the other is in-direct listing. Private enterprise studies in this paper exclude state-owner economy. Since 1996 in China, the number of private listing corporations have been going increased year by year, and in-direct listing has become the main form of private enterprises' access to stock market. In the paper, the author made a substantial evidence analysis on the 53 private corporations which have entered China's stock market by the end of 1998. By means of the SHAZAM regression test analysis, the author draws a surprising conclusion: as far as private listing companies are concerned, state-ownership enterprise's efficiency is more satisfied than private ones. This indicates that improving the management of private enterprise has already been on the agenda.