Mr. Zhang Zhengying, A Deputy to the 10th NPC/CPPCC Concerns about the “Icecream Phenomenon” of the State Property -- The state property should not melt! The state property suffers a lot of loss during its reform. It usually results from the disobeying rule of some state-owned enterprises and state holding enterprises in the SOE reform. Recently, in the survey of the three Northeastern provinces of China, the reporter discovered that there was much more loss, that is, most of the state property is hard to float, like dead water. Someone took it as ice cream phenomenon. If you have a bite, someone would stand up to scold you. It would melt slowly and finally become a stick and no one would concern about it. The deputies in the “Two Conferences “ call up that the state property could not melt like a cone of icecream. Mr. Zhang Zhengying, the vice general manager of Harbin Bearing Group Co. (HRB) said that the “icecream phenomenon” does exist among the state-owned enterprises. The sales of old facilities must be approved by many officials. Sometimes it would take a long time to approve. They would fix a long price, but it was not worth that much. Those facilities were not allowed to sell at a lower price. So they would become waste iron. There are lots of problems in the evaluation of state property. Many enterprises would want to get a higher evaluation and get more shares in the cooperation with individually-run enterprises. They would not see the loss of the state property. The real asset of one subsidiary company of HRB was 40 million yuan, but the evaluation value was over 70 million yuan. They wanted to cooperate with an individually-run company, but future copartner gave up. Now the subsidiary company is dying. That was the loss of state property.