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Privatization in China: Experiences and Lessons

Chapter
Part of the The Milken Institute Series on Financial Innovation and Economic Growth book series (MILK, volume 8)

Abstract

This chapter provides a descriptive analysis of China’s privatization, by far the largest one in human history. Unlike the mass privatization in other transitional economies, China has adopted multiple approaches to privatizing its state-owned enterprises (SOEs). These approaches included share issue privatization (SIP), joint ventures with foreign firms, management buy-outs (MBO), and sales to outsiders. I examine how these different approaches may affect the incentive and ability of the new owners to restructure the firms and thus influence the outcomes of privatization programs.

Keywords

Privatization Chinese economy Transition economy Corporate governance 

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Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.Hong Kong University of Science and TechnologyHong KongChina

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