The difference between state-owned enterprises and listed companies

Legal analysis: The difference is that state-owned listed companies are state-owned enterprises that can trade shares in the secondary market, and state-owned enterprises are state-controlled shares, but they are not traded in the secondary market. A state-controlled listed company refers to a listed company in which the government or state-owned enterprises (units) own more than 50% of the share capital, although the shareholding ratio is less than 50%, but they have actual control rights (the right to control the business decisions, assets and financial status of the enterprise, so as to obtain capital gains) or the shares they hold are enough to have a significant impact on the resolutions of the shareholders' meeting.

State-owned enterprises, in international practice, only refer to enterprises invested or controlled by the central government or the federal government of a country. In China, state-owned enterprises also include enterprises invested and controlled by local governments. The will and interests of the government determine the behavior of state-owned enterprises.

As a form of production and operation organization, state-owned enterprises have the characteristics of both profit-making legal persons and public welfare legal persons. Its profitability is reflected in the pursuit of maintaining and increasing the value of state-owned assets. Its public welfare is reflected in the fact that the establishment of state-owned enterprises is usually to achieve the goal of national economic regulation and play a role in coordinating the development of all aspects of the national economy.

Legal basis: Article 120 of the Company Law of People's Republic of China (PRC) The listed company mentioned in this Law refers to a joint stock limited company whose shares are listed and traded on the stock exchange.