Zhongmin vote, setting sail: Morgan to break airlines ‘ stock ownership incentive

Polaris solar PV net news: history of private enterprise in China, there has never been any company caused so much stir if not listed.

Prime Minister personally signed; 50 billion registered capital Chairman Dong wenbiao; Shi Yuzhu, Lo Chi-keung, Sun Yinhuan etc bigwigs are scrambling to stake private enterprises … …

On August 21, Shanghai Federation of industry and Commerce Chairman Wang Qinmin, Secretary of the National Federation Party, minkuan Vice-Chairpersons, Executive Vice Mayor of Shanghai City Mayor Yang Xiong and issued in person at the scene, minkuan and Yang together for this legendary “prefix in” private enterprise–China Minsheng investment joint stock company (hereinafter “vote”) inaugurated.

“Zhongmin, and my train of thought is very clear. “People Chairman Dong wenbiao creates shots as his second. Different from the inception in 1995 when Minsheng Bank hacked, Dong wenbiao believes that current market awash with gold, value has only scattered, he needs to do is through consolidation, picked up the gold.

Interview Dong wenbiao, zhongmin was disclosed for the first time to vote the shareholder structure, business models, and many other details. He also admits that “this thing than it was 20 years ago when Minsheng Bank is more confident,” “make money for sure, will be able to turn a profit this year. ”

“The prefix” granted a to z

“People voted from the idea to the creation, in fact, is a very short process. “Dong wenbiao, told reporters.

Originally, Dong wenbiao intended to retire next year. People voted in as Chairman, also refuse to a certain extent.

According to Minsheng banking 2012 through the Constitution be amended to maximum three-term, Chairman, to the third term expires 2015 Dong wenbiao.

Close to Minsheng Bank said said on the table before modifying the articles, even directors Chairman Dong wenbiao back again after three years. But Dong wenbiao insists that people should not waste things, own rules themselves to be executed, the point no longer term.

People voted in the initial idea was, which was established last year.

In 2013, the Federation of industry and Commerce after the general election, the newly elected Vice Chairman of the Federation of entrepreneurs are highly motivated, under the background of macro-economic transformation and upgrading, and want to do something. On August 13, 2013, the private economy development in China (changbaishan) Forum, was elected Vice Chairman of the Federation of most of the entrepreneurs attended the meeting.

“In August people voted in this idea is the establishment of Changbai Mountain Forum entrepreneurs out of touch. “Dong wenbiao said, really began to specifically discuss the zhongmin vote in this thing, is this year’s the” two sessions “.

Dong wenbiao also explained that people vote for one of the reasons that in the establishment of private enterprises create value together, into good GDP, good wealth, pushing forward China’s economic transformation.

Set up one thing, China has also attached great importance to October 2013 zhongmin cast Preparatory Working Group was established, Vice Chairman of the Federation of industry and Commerce Huang Rong as head of the preparatory group, Federation Vice Chairman Dong wenbiao Deputy head. National leaders on many occasions heard zhongmin cast preparatory group reporting, and entrepreneurs have a uniform consensus, zhongmin advancing preparations for the vote. From real discussions to create it only took a couple of months time. Under normal circumstances, at least 1 year. Zhongmin voted for speed in which Dong wenbiao was satisfactory.

Zhongmin investment and private enterprise, you need Premier signed major cause is “prefix in the enterprise” requires approval of the State Council.

Voted for zhongmin, Dong wenbiao qualitative as initiated by the National Federation to set up large-scale private investment companies, was launched after the establishment of Minsheng Bank is another major initiative on China private economy development is of landmark significance.

On May 9, zhongmin invested in Shanghai to complete the registration. Shanghai was chosen, to a certain extent for Minsheng Bank, founding Chairman Jing shuping, the founder.

“In those days the Minsheng Bank’s inception, the old hope to set up their headquarters in Shanghai, but for various reasons, failed to materialize. “Dong wenbiao said now was established can be considered also by the old vows. In addition, Shanghai is China’s financial centre, the people vote in the future to recruit foreign professionals, they adapt the atmosphere.

Equity incentives and innovation

As originally envisaged, zhongmin vote was intended to set the number of shareholders at 50, but not the Organizing Committee’s surprise, after the broadcast of messages, private enterprise’s shared enthusiasm at an all-time high. Even after completion of the registered people voted in, there are some enterprises through various channels to Dong wenbiao expressed a desire FireWire shares.

A widespread zhongmin from the current lists of shareholders voted, zhongmin shareholders voted number reached 59. Among them, the Giants and Oceanwide construction group, suning group, Dongyue group, ZONGSHEN, yida holdings and other illustrious of all private enterprises in the column.

In addition, the more closely watched in 59 shareholders, there are 11 investment management companies, including 10 new companies set up in 2014. A registration date as April 22, 2014 at the latest, from the incorporated people voted in just 17 days. These investment companies, many have a livelihood and silver asset management company (hereinafter “the livelihood of CDB information management”) in the background. The livelihood of CDB-funded Canal Plus’s largest shareholder is the livelihood fund companies and equity holdings accounted for 40%, plus silver Fund is a subsidiary of Minsheng Bank and people’s livelihood.

People speculated that between there and the Minsheng Bank tunneling.

Dong wenbiao categorically denied this. “This is actually people voted in an incentive program. “He said,” virtually all Executive stock ownership plans are very much in support. ”

According to people who attended zhongmin Investment Board said shareholders are thought to run the company, executives incentive is the core. Incentive programs in the preliminary draft submitted by Dong wenbiao, Executive ownership is not high, are also shareholders thought that not enough free.

From international practices, the company will give 15%~20% shares to Executive. And zhongmin vote would eventually come up with 8% of shares to Executive. Zhongmin investment and registered capital of up to 50 billion, even 1% stake is required at a cost of 500 million Yuan. Zhongmin investment executives for professional managers. The billions of money come from?

It is learnt that the zhongmin investment executives by Minsheng issued by CDB information management company investment scheme, raise money for buying stakes in investment. Holdings executive bonuses deducted from funding by the end of principal and interest. Eventually after a number of years, plans pay off information management, executive official to hold people’s voted shares. Zhongmin between investment and equity incentive plan will cover sectors Vice President level and above, number about 20%.

One bank insider said Minsheng Bank’s biggest defect is the failure to achieve managerial ownership. Managerial ownership finally voted in this time has come true.

For commercial banks, equity incentive once existed. 2006 ~, a group of banks introduced the equity incentive plan, Bank of Beijing, Bank of Ningbo, the incentive has created a number of billionaires. But in July 2008, a paper notice from the Treasury, explicitly state-controlled listed financial firms are not allowed to engage in equity incentive, many financial institutions ‘ equity incentive plan ran aground.

Generally, equity incentive scheme of the executives of State-owned financial institutions and mainly due to “double identity”. According to international practice, paid financial executives belonging to industry practices. But the partly State-owned bank executives are “cadres”, official business, and as-level officials, high salaries and the lack of institutional basis. Therefore, Bank equity incentive plans have been stalled in the controversy.

Minsheng Bank is a private bank, but it has still failed to achieve equity incentive plan. The benefits of stock ownership incentive is to align executives ‘ interests with the company’s medium-and long-term development goals of organic unity.

China’s Morgan

Return on capital to pursue shareholders shareholder enthusiasm due to vote in good earnings expectations of zhongmin.

In an interview during the Dong wenbiao zhongmin investment and business models are described for the first time. Overall, zhongmin cast United States Morgan of 19 century to the early 20th century as a goal, its investment scope covers industry and finance, geographical spans both international and domestic markets.

The domestic market, zhongmin voted through the consolidation of resources, promoting investment enterprises listed by, gets equity value-added benefits.

“Now most domestic enterprises need to solve the problem of the balance sheet. “Dong wenbiao said many domestic enterprises have good assets and bad assets in one piece. More water, and surface, surface water, the result debt ratios got higher, until unsustainable.

For this kind of memory resources integration, zhongmin investment and business models for accredited Chief Financial Officer, helping companies to optimize the integration of resources. Zhongmin voted not holding only financial investments, these companies in the future market, quit to earn income.

Dong wenbiao said he had seen a coal chemical business has a lot of good assets, but high rates of indebtedness. Zhongmin voted for a solution would be, first, the enterprise resource well, set up a resource group and, secondly, the enterprise technology, and set up an equipment manufacturing group; and, third, establishing coal to gas group four, established sales and service group. Final hours of mixed companies apart, in which resource group to undertake loan liabilities, other companies are asset-light so that debt ratios down at once, then brought in PE and VC, and eventually go public.

Meanwhile, zhongmin massaged investment and hopefully in increments.

Under the plan, zhongmin will establish some platform, a part of the capital, and then into the PE funds set up new businesses, and through better business models for the integration of resources, ultimately listed with 5-8 time and exit.

It is understood that, at this stage, zhongmin investment and plans to create a platform of ore in new energy, logistics, property, capital and other 5 to 7, which will focus on sectors such as steel, PV, finance.

Iron and steel industries, for example, zhongmin vote selecting the breakthrough in logistics. Steel and iron industry concentration is low, zhongmin investment plan integrating 15 steel output of 10 million tons of iron and steel enterprises, total output was 150 million ~2 million tons. 1 ton crude steel consumption of 1.6 tons of iron ore, that is to say, 200 million tons of crude steel a 320 million tons of iron ore.

“The 320 million tons of iron ore, Vale with an annual output of two-thirds. Take the purchase scale negotiations easier to press down the price. “Dong wenbiao said, financing, credit issued millions of tons of weight and volume of 320 million tons of open letters of credit, varies greatly.

“320 million tons, a ton of 90 per cent in dollar terms, total up to $ 28.8 billion, more than 170 billion yuan, the sales volume is the world’s top 500. “Dong wenbiao said on the transport capacity, 320 million tons equivalent to 1.5 COSCO Group’s transport capacity. Zhongmin cast can be set up in the ocean, and steelmaker shares. May soon be steel steel enterprises accounted for only half of revenues, while the other half is created by people voted with them in.

On management mode and zhongmin although these platform, the company’s Chairman, CEO, CFO, and everything else no matter what, but from the very beginning, zhongmin vote requires that management will be listed as a goal. Zhongmin cast including its platform will continue to be open and transparent, zhongmin investment and internal audit teams from Headquarters, legal team will be very strong. If a standardized platform does not meet the requirements of corporate governance, internal audit teams from Headquarters will be on hand to help their target.

“This thing more than it was founded 19 years ago, Minsheng Bank with confidence. “Dong wenbiao said that wealth and value has been formed, just scattered everywhere, you need to do is pick up gold.

Private Edition “CIC”

In the proposed platform, people in the capital have attracted the most attention, its people voted in the strategic architecture occupies an important strategic position. People voted in conception, in the short term, because of the many opportunities, financial investment will be the key; medium and long term, will make the capital a financial holding group.

“Foreign financial holding is proved more successful. “Dong wenbiao said among banking, securities and insurance properties are different, but complementary. People’s capital in the first step the focus will be on areas of insurance, securities, trust, and banks are not moving for a while.

In fact, prior to this market has been widely rumored, zhongmin voted to lease investments owned Minsheng Bank and the people’s livelihood, livelihood and silver funds, such as Minsheng bank-owned financial enterprises. Dong wenbiao has denied the rumors. Dong wenbiao said zhongmin voted in collaboration with Minsheng Bank, such as zhongmin deposits are cast by Minsheng Bank, but facts speak, cooperation will not be too many, after all, the banks ‘ capital for zhongmin cast price is too high.

People voted in the scenario, the funds should come from the State Development Bank and the export-import Bank, even outside. In fact, such a scenario is not impossible. From the inception, zhongmin vote is called a private version of the CIC.

Recently, Dong wenbiao has also specifically called on the CIC Chairman Ding Xuedong. Two sides reached a tacit understanding: people overseas have well project does not exclude the CIC’s investment.

Investment and business sector, international will also be an important piece of the market.

In the eyes of Dong wenbiao, China’s private enterprises going, if one-on-one, and injury rates are very high. Zhongmin cast is different, people voted in foreign countries in the future to build a platform for going out of the private enterprises in terms of technology, finance, operations research, and other support. Zhongmin investment both financial strength and a very good platform, you can reach out to more senior levels, greatly reducing the failure rate.

It is learnt that the zhongmin voted International was established in Hong Kong (Hong Kong), international was founded in London (London), one of its duties is to help enterprises to go global. Meanwhile, the international sector, owning a European financial institution is also the meaning in question.

“People voted in the ‘ going out ‘ should be the overall opportunity is good, European financial sector prices are very cheap now, a lot of things very well indeed, brand, value is quite large, but it ran out of money. “Dong wenbiao said zhongmin do vote are interested in trying, such as buying insurance companies, private banks, and so on.

Talk about business prospects, Dong wenbiao was confident “people investing and making money is not a problem in the future, will be able to make profit this year. ”

Where does energy come? In addition to the flexible system, talent is people voted in the largest trust.

“We bought the enterprise, to a large extent, acquire a mature team. “Dong wenbiao said, up to now, zhongmin vote numbers about 40 people at Headquarters, the majority came here to recruit. These people not only have years of experience in related industries and superior ability.

Look people vote in future, said Dong wenbiao, are ready to consolidate a number of Fortune 500 companies, and zhongmin cast speed, which will be soon, “Minsheng Bank take nearly 20 years to walk the road, reaching its present size, zhongmin vote may just use can be completed in half the time. ”

Original title: people vote in setting sail: Morgan to break airlines ‘ stock ownership incentive

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