One of China's most prestigious universities is to end its direct
ownership of its business enterprises and restrict its name to
academic activities.
Tsinghua
University, based in Beijing, is to set up a holding company to
handle its stakes and rights in its companies before the end of the
year.
Rong Yonglin, president of the Tsinghua Enterprise Group, said
all the companies would remove "Tsinghua" from their titles and the
university would no longer take unlimited responsibility for
them.
The Tsinghua Stock Holding Co., Ltd. would be a state-owned
limited company and act as a "firewall" to protect the university
from operational risks, he said.
The companies should adopt modern corporate systems and make
clear their property rights.
A local analyst, who declined to be named, said the move would
incur losses for the former Tsinghua assets which were already
listed as public companies or planned to do so. But in the long
run, it would create a bigger stage for the businesses to seek
higher profits.
Many Chinese universities own enterprises, which attract
investors. Tsinghua's enterprises include Tsinghua Tongfang
Computer Company and Tsinghua Ziguang Pharmaceutical Company.
(Xinhua News Agency October 8, 2003)