What is a state-owned listed company?

State-controlled listed companies: refer to the government or state-owned enterprises (units) owning more than 50% of the share capital, and although the proportion of shares held is less than 50%, they have actual control (the ability to control the business decisions of the enterprise) and assets and financial status, and thereby obtain the right to capital gains) or the shares held by it are sufficient to have a significant impact on the resolutions of shareholders' meetings and general meetings.

Extended information:

Advantages

1. Obtain funds.

2. The owner of the company sells part of the company to the public, which is equivalent to asking the public to bear the risk with him. For example, if he holds 100% of the company, he will lose 100 if he loses; if he holds 50%, he will lose 100%. Only pay 50%.

3. Increase the asset liquidity of shareholders.

4. Escape from the control of banks and no longer need to rely on bank loans.

5. Improve company transparency and increase public confidence in the company.

6. Increase company visibility.

7. If certain shares are transferred to managers, it can alleviate the conflict between managers and company holders, that is, the agency problem

Disadvantages

1. Listing costs a certain amount of money.

2. While improving transparency, it also exposed many secrets.

3. Share holders must be informed of the company’s information every period after listing.

4. It may be maliciously controlled.

5. When the shares are listed, if the price of the shares is set too low, it will be a loss to the company. In fact, this is a common practice. Almost all companies will set their stock prices higher when they go public.

Baidu Encyclopedia-listed companies

Baidu Encyclopedia-state-owned listed companies