The PLA at Home and Abroad - Strategic Studies Institute - U.S. Army

89. Interview with Ping’An Securities on November 3, 2009.
90. This means that in addition to SASTIND and SASAC—the
usual ratifying bodies for stock listing approval—the approval of
additional oversight bodies like the Ministry of Finance, the State
Commission Office for Public Sector Reform, the Ministry of Human
Resources and Social Security are also required. This is because
of the need to resolve social security support for employees
for instance. In addition, transforming to enterprise status automatically
reduces or cuts off central government funding. Li Chao
(李超) and Xu Ying (徐英), “大军工过槛” (“Defense Industry Will
Cross Threshold”), 21世纪经济报道 (21st Century Business Herald),
December 13, 2008.
91. Ren Qing (任晴), “试析航空工业体系改革” (“Analyzing
the Aeronautics Technology Research Institutes System Reform”),
研究与探讨 (Research & Discussion), No. 5, 2002.
92. Sheng Ruowei (盛若蔚), “中国军工企业揭开“面纱”首次面
向全球招聘高管” (“Defense Enterprise looks to Global Recruitment
for Senior Manager for First Time”), 人民日报 (People’s Daily),
February 7, 2009.
93. Intra-industry competition: When a defense asset producing
one technology under one defense corporation is listed as an
IPO or asset injection, it has to put all facilities of the same category
and products into that new concern to adhere to market
fairness guidelines. The scattered and dispersed nature of the
thousands of enterprises under the defense corporations makes
this difficult. For example, in 2007, when China Aviation Optical-
Electrical Technology controlled by AVIC planned an IPO, it has
to skillfully purchased related assets under AVIC. After dealing
with the problems of intra-industry competition, China Aviation
Optical-Electrical Technology received permission for an IPO
from the CSRC. Zhu Yu (朱宇), ”中航光电揭开军工整体上市面
纱” (“China Aviation Optical-Electrical Technology Unveils IPO
as A Whole”), 中国证券报” (China Securities Daily), December 3,
2007. As for “Affiliated transactions,” any transaction conducted
within the company, or between it and an affiliated company
and/or interested persons, is regarded as a negative thing by the
stock market. In the Chinese defense system, however, only 15
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