By Zhang Qi, Zhang Xiaoji, Lv Gang　

Date: 2002/02/28

Abstract:　

It is difficult to rely only on administrative approval to effectively prevent the risks associated with the investment and operation of state owned enterprises in foreign countries. In order to create conditions for large enterprises to carry out transnational operations, more modalities should be adopted to improve asset management system. While strengthening government macro guidance, two ways should be emphasized. One is to improve the corporate governance structure of the investing enterprises to enhance supervision of their overseas assets. The other is to monitor the investing enterprises from outside and controls the risks associated with investment abroad.