The Power of Private Companies

China has accomplished an economic miracle during the three-decade implementation of its reform and opening-up policies with remarkable contributions from the private sector. How did private companies develop during this time? What obstacles did they confront? How can they better developin the future? For the answers to these questions, Beijing Review reporter Lan Xinzhen interviewed Quan Zhezhu, Vice Chairman of the All-China Federation of Industry and Commerce (ACFIC).

Red-Collars in Private Companies

A recent article in People’s Daily depicts why private companies so badly need the installment of grassroots Party

Board Characterstics and Capital Structure： An Empirical Study on China＇s Private Listed Companies

Board of directors is one of the important parts of the corporate internal governance mechanism. Using panel data from 144 China＇s private listed companies during 2001-2003, this paper empirically studies the relationship between board characteristics and capital structure with the methods of pooled OLS, first-order difference model and fixed ,effect model.

Dynamic Private Enterprises in Shandong

ON August 8,2014 the AllChina Federation of Industry&Commerce published the list of China’s Top 500 Private Enterprises.Fifty-four private companies from Shandong Province ranked among the top 500,putting Shandong in third place behind Zhejiang and Jiangsu.Fifteen Shandong companies ranked in the top 100.This achievement is attributed to the province’s economic reforms and an improving business environment.

Can Female Directors Enhance the Value of Private Firms？ Evidence from China＇s Listed Companies

Female directors have become common in private companies. Using data from private listed companies in China＇s A-share stock market from 2000 to 2009, this paper analyzes whether the existence of female directors can enhance firm value. Results show that female directors have a significantly positive impact on firm value. Moreover, female directors promote enterprise value less significantly in regions with better institutional environment, which implies that there is a substitution relationship between female directors and institutional environment. Furthermore, we use 2SLS （two-stage least squares） and LEVOP （lag the explanatory variables one period） to control endogeneity, and the research conclusion remains robust. Our study provides additional empirical evidence for economic consequence of female directors, and expands research on the relationship between board structure and firm value.

Progress in Foreign Cooperation of China's Oil Industry

In 2015, China＇s oil companies＇ overseas equity oil has grown steadily to approximately 150 million tonnes. State-owned oil majors have turned from scale-oriented to profit-oriented by adjusting investment speed and optimizing portfolio to improve operating profit of overseas business. The overseas investment of private oil companies mainly focused on two fields： the first is to invest in countries along the Belt and Road （the Silk Road Economic Belt and the 21st-century Maritime Silk Road）, and the second is to enter the oil industry of the developed countries by M＆A. Limited progress has been made in ＆e foreign cooperation of domestic upstream sector, while new changes emerged in the foreign cooperation of upstream sector. Some planned projects were postponed or delayed due to domestic or international market changes. Private oil companies, however, began to cooperate with foreign companies in the downstream sector after the former got the right to import crude oil.

THE FRONTLINE OF REFORM

One year on from its establishment,how is Shanghai’s free trade zone doing thus far？Hony Capital,founded in 2003,is a leading private equity firm in China.It mainly focuses on investment in advanced manufacturing,health-care and service sectors both at home and abroad.In the past,when Hony Capital would bid for overseas acquisition,it had to add a caveat in the bidding papers—if the acquisition failed to