What Is Strategic Investing?

Strategic Investor refers to a legal person who meets the requirements of national laws, regulations and regulations, has a cooperative relationship or cooperation intention and potential with the issuer, and is willing to sign a strategic investment placement agreement with the issuer in accordance with the issuer's placement requirements. The company has a close business relationship and is a legal person who wants to hold shares of the issuing company for a long time. In July 1999, the concept of strategic investors was first proposed.

Strategic investor

Strategic Investor refers to meeting the requirements of national laws, regulations and rules, having a cooperative relationship or cooperation intention and potential with the issuer, and willing to sign with the issuer in accordance with the issuer's placement requirements

China introduced in new share issuance

(1) Closely connected with the issuer's business and possessing the strength to promote the issuer's business development.

(2) Long-term stable shareholding.

First of all,

The core of the reform is restructuring. The premise of restructuring is the introduction of strategic investors. The purpose of attracting capital is to make it bigger and stronger. The reason that the premise of the reform is to attract investment and introduce strategic investors. The analysis of the state found that this is because: first, it was determined by the purpose of the reform of the local state-owned enterprises. The purpose of the restructuring is not to sell everything, not to simply unload the burden. Fundamentally, it is aimed at becoming bigger and stronger. After the reforms in recent years, most of the small and medium-sized state-owned enterprises have been reformed, and there are now more than 400 large and medium-sized enterprises. Its assets account for about 79.3% of the total assets of the province's industrial enterprises above designated size. For these large and medium-sized state-owned enterprises with huge assets and strategic importance in the province's economy, the realization of diversified property rights depends on the internal employee shares or management buyouts, or the sale of some net assets, or even step-by-step reforms. The disadvantages. Because, compared with the company's huge stock assets, a small number of insiders have invested in the shares, the increase is limited, its property rights structure remains, the governance structure remains, and the pattern of insider control remains unchanged. In particular, this amount of capital is really a waste of money for companies to expand their scale, improve their operating conditions, and increase their market competitiveness. Only with the introduction of powerful strategic investors can we use external forces to drive various economic resources into industries with comparative advantages in our province and make our enterprises bigger and stronger; and we can include our state-owned enterprises that are still closed and semi-closed into the international community. Economic system.

Secondly, from the perspective of the possibility of attracting foreign capital, some comrades are worried that many state-owned enterprises have experienced poor operation after many years, their assets are in poor condition, and equipment, technology and products are seriously aging. In addition, the state-owned enterprises generally have redundant staff, society and debt The burden is heavy, and there is no confidence in whether it can attract powerful strategic investors to restructure and merge state-owned enterprises. To dispel these doubts, it is necessary to conduct in-depth research and analysis from the combination of theory and practice. Many large and medium-sized state-owned enterprises in our province are indeed facing serious difficulties. These difficulties do not mean that the industry's prospects are not good, but simply due to institutional and mechanism problems.

Whether foreign capital or private enterprises, once they see the potential value of these large and medium-sized state-owned enterprises, they will actively seek entry. In fact, in the recent period, many powerful investors at home and abroad have taken the initiative to negotiate. From the perspective of the trend of international industrial transfer, the current adjustment of the global industrial structure is deepening, and capital-intensive industries are beginning to shift to developing countries. As a result, cross-border capital flows have accelerated and new investment channels have been sought. The combined effect of these two aspects has greatly changed the relationship between supply and demand in the property rights market. It has changed the situation in the past in which state-owned enterprises were unattended in the capital and property rights markets, and even some insolvent companies have suffered due to the rapid development of their industries. Popular with many investors. In particular, in order to support the adjustment and transformation of old industrial bases and the restructuring of state-owned enterprises, the state has introduced and is about to introduce a series of preferential policies, and provides certain financial support to help old state-owned enterprises to remove the burden. This has introduced domestic and foreign large and medium-sized state-owned enterprises in our province Strategic investors create a good environment for property rights transactions. Judging from previous practices, many of our enterprises are actively seeking investment, which has brought about a new turn for the reform and development of enterprises. For example, Jiamusi's original combine harvester factory was insolvent in 1996, and it was later introduced to John Deere in the United States, which quickly brought this company back to life; and the provincial management company Star, which was also insolvent a few years ago, passed effective assets Separated from black paper, and a joint venture with a Hong Kong company, it has also taken a new path to turn losses into profits.

Again, we should especially see that at present we are facing a once-in-a-lifetime good opportunity, that is, the state has promulgated a high-speed transformation policy for old industrial bases that will soon be introduced, such as retired and laid-off workers. Incorporate into the social security system pilot to provide financial support for the construction of a sound social security system in our province. For the enterprise-run society, we must not only strive for policies, but also the province is determined to provide funds to spin off the enterprise-run schools; and to introduce policies to support other enterprises to run "small societies", such as nursery schools, hospitals, and guest houses. Etc., in the form of capital-sharing, divested from the enterprise and operated independently. Regarding the debt burden, we are also actively looking for ways to discuss with banks and asset management companies to jointly find a solution that everyone can accept. It should be said that the provincial party committee and the provincial government have paid a huge cost to undertake and realize the development strategy of revitalizing the old industrial bases in Northeast China on the basis of the new system and mechanism, and to promote the state-owned enterprise reform and the strategic adjustment of the state-owned economic layout. The conditions that can be created are created to the best of our ability, and the benefits that can be taken into account are fully considered.

In short, attracting strategic investors and realizing the reform of state-owned enterprises is a strategic move taken by the government as a funder. It is not only a question of attracting investment, nor is it a question of restructuring. It is also a means of bringing in the relatively closed state-owned enterprises of our province into the domestic and even world economic system through capital flows to realize economic factors such as talent, management, and technology. Internationalization and marketization. This is the key step for our province to finally bid farewell to the planned economy, establish and improve the market economy system, and complete the socialist market economy goals established by the 15th and 16th National Congresses. We must overcome all difficulties, eliminate all obstacles, take this step forward and go well. ^[1]