A Study of the Public Issue of the Stocks of the Company Ltd. of China Mainland

• Main Authors: Lo,Chin-wen, 羅欽文
• Other Authors: Hsin-Sun Liu
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/58871307194530243895

碩士 === 淡江大學 === 大陸研究所 === 89 === Abstract： The stock market is an important channel to link the deposit and production investment, as well as a symbol of the traditional capitalist society. The existence and development of the stock market is closely tied with the establishment of the human kind''s stock system and the development of the limited-liability companies. It has taken a long time for western countries to develop their stock systems and limited-liability companies. However, similar enterprises emerged in China mainland and Taiwan.Such organizational forms influence the future development of respective securities (mainly stock) markets. From 1949 to 1978, the public ownership was implemented through the whole China mainland. Under the ownership by the whole people, enterprises belonged to the country and the collectiveness which both contain abstract concepts. It was not until the Third Plenary Session of the Eleventh Central Committee that the Communist Party decided to carry out the reforms and the policy of opening to the world. In 1992, a strategic decision was made in the Fourteenth National Congress of Communist Party of China to establish "socialist market economy system" in China mainland. Hereafter, the planned economy is fading its color, and the market economy grabbed its crown. Since the test of stock system reform applied in 1984, the number of the company Ltd. in China mainland was increasing abruptly. After issuing stocks due to the partition of the property rights, the enterprises gradually started to exchange their stocks and issue their stocks publicly. China mainland started its stock exchange test in Shenzhen in 1989 and set up Shanghai Stock Exchange in 1990. Soon afterwards, a series of laws and regulations was made from the local government to the central government to provide the legal substratum for the stock issue and the system of the company Ltd., as well as actuate the prosperity of the stock exchanges in Shenzhen and shanghai. The Communist Party has come through hard years from its foundation to the establishment of the stock exchanges in Shenzhen and Shanghai. China Securities Regulatory Commission, Shenzhen Stock exchange and Shanghai Stock Exchange have the responsibility to supervise the securities market of China mainland. Before promulgating the Law of Securities of P.R.C., the stock issue should be examined and approved through a strict procedure named "management of planned quota", but after the issue of the law, its can be issued provided they are qualified. Due to the socialist public ownership in the past time, most of the company Ltd. were founded by transforming their original state-owned organization into limited by shares ones during the implementation of the Corporate Law(P.R.C.). Through these measures, China mainland has gradually set up a regulatory system for stock listing. Different from other stock exchanges, Shenzhen and Shanghai Stock Exchanges currently list A Shares and B Shares with different listing conditions and procedures respectively. Compared with New York Stock Exchange (NYSE) and Taiwan Stock Exchange Corporation (TSEC), the stock exchanges in China mainland differ in their organizational form, the jurisdiction of the securities regulatory unit and the stock listing procedures and conditions as well. Peculiar problems and resistance, brought by different factors such as the state-owned enterprises in China mainland, exist in the reforms of the state-owned enterprises and the establishment of a healthy stock market in China mainland. Stock issue isn’t the panacea for the enterprises to raise funds, therefore, China mainland needs to seek a root solution. After the entry of WTO for both Taiwan and China mainland, the capital market of China mainland will encounter diverse challenges and the demand for internationalization. China mainland should promptly take a grave view of these problems to genuinely amplify the capital market and establish the market economy system.