Standardizing The Asset Management Of Direct Equity Investment In State-Owned Financial Enterprises

　 treasury department Recently, a document was issued to regulate the asset management of direct equity investment in state-owned financial enterprises. It clearly stated that an effective exit mechanism should be established

In the Notice on Further Clarifying Asset Management Issues Related to Direct Equity Investment of State owned Financial Enterprises (hereinafter referred to as the Notice), which will come into force on July 6, the Ministry of Finance requires that State owned financial enterprises should follow the principles of stability and safety, comprehensively consider benefits and risks, establish complete decision-making procedures and operate prudently when conducting direct equity investment business. Direct equity investment projects shall conform to the national industrial, investment and macro-control policies.

The state-owned financial enterprises include all state-owned enterprises, state-owned financial holding companies, state-owned guarantee companies and other state-owned financial enterprises that have obtained financial business licenses.

The notice said that state-owned financial enterprises can establish an internal investment management team to carry out direct equity investment business in accordance with regulatory provisions, or entrust external investment institutions to manage and operate.

stay operation In terms of direct equity investment, state-owned financial enterprises shall, according to the specific situation of the proposed investment project, adopt internationally accepted valuation methods to evaluate the investment value of the proposed investment enterprise and obtain prudent and reasonable valuation results. Valuation methods include book value method, replacement cost method, market comparison method, discounted cash flow method and multiple method. The state-owned financial enterprise shall determine the base price of the enterprise to be invested by reference to the evaluation results or evaluation results for reference in investment decision-making.

"When reviewing the investment plan, the decision-making layer should focus on the factors such as the investment cost of the project, the valuation or evaluation results, the expected return of the project, the controllability of risks, and make overall decisions in combination with its own market positioning and operating conditions." The notice requires.

Equity assets formed by direct equity investment that do not enjoy a controlling right do not fall within the scope of state-owned asset property rights registration of financial enterprises, but state-owned financial enterprises should establish a complete equity registration ledger system and do a good job in management.

At the same time, the notice requires that state-owned financial enterprises should establish an effective exit mechanism to carry out direct equity investment, including public offering and listing, mergers and acquisitions, agreement transfer, equity repurchase and other ways.

In case of exit by means of negotiated transfer or share repurchase according to the price and conditions agreed in the investment agreement, the shareholders' (general) meeting, the board of directors or other institutions of the state-owned financial enterprise shall make their own decisions and handle the formalities of share transfer in accordance with the relevant provisions of the articles of association; In case of equity transfer by other means, relevant regulations on state-owned financial assets management shall also be followed.

state-owned finance If the enterprise invested by the enterprise withdraws through public offering and listing, it shall perform the obligation of reducing and transferring state-owned shares in accordance with the relevant provisions of the state. If the obligation of transferring state-owned shares can be exempted, it shall apply to the relevant departments for exemption in accordance with the relevant provisions.