The Research Of China's Regulation System Of The Market For Securities Issue And Its Validity

In December,1990,taking the establishment of Shanghai stock market as the symbol, the stock market of new China was born and started to grow.After more than 10 years' whets and tempers,the stock market of China,itself the child who toddled from one growing up gradually,has obtained the result which attracted worldwide attention.It has powerfully promoted the state-owned enterprise's mechanism transformation and the establishment of modern enterprise system,and impelled greatly the development of the national economy,the adjustment of industrial structure and the advance in technology.The development of the stock market made the market economy thought sink deep into the hearts of the people and the deepening of the money market has accelerated greatly the entire economic restructuring step.After more than 10 years' development,the stock market of China now stands on the front stage of the stock market in Asia.Adapting with the development of the market,the supervision system of negotiable securities in our country is also consummating gradually.In October,1992,the State Council decided to establish State Council Negotiable Securities Committee and the implementing agency—Chinese Negotiable Securities Management and Supervision Committee.In the same year,the State Council promulgated "Notice of the State Council about Further to Strengthen Stock Market Macroscopic Management".In December,1993, "Corporation Law of the People's Republic of China" was promulgated.In November,1997, the Chinese Central Committee held the national finance workshop with the State Council, formulated the organizational reform plan of the stock market supervision,and further strengthened to uniform the supervision of the stock market.In addition,the Chinese Securities Supervisory Association established three-level supervision system and has been responsible for the centralized control of the national negotiable securities and commodities trading.On July 1,1999 "Securities law of the People's Republic of China "promulgated officially,has laid the foundation for supervising and managing the stock market legally.The supervision of negotiable securities issue,the first strobe of the stock market,will directly affect the development and stability of the negotiable securities trading market.It will also affect the efficiency of resources allocation of the entire stock market.Therefore,it is necessary to conduct the research on the validity of the supervision of present negotiable securities issue.Domestic literatures concerning the supervision of negotiable securities issue mainly concentrate on description,and few of them use empirical analysis.The methods of empirical analysis used to evaluate the validity of the supervision system of negotiable securities issue abroad,should initiate the "Efficient Market Hypothesis"(EMH) put forward in 1970 by the famous American economist,E.F.Fama,which may be the most influential theory.But it is applicable to the analysis of securities trade market generally only,but not suitable to be applied to the market in China for the supervision of negotiable securities issue.In order to evaluate it impersonally and equitably,this paper tries to use a proper method of empirical analysis to evaluate the validity of the supervision of negotiable securities issue in China,which is also the creative foundation of this paper.Firstly,the author states the basic concepts of the supervision of negotiable securities issue in the paper,using the method of from general to special.Based on the theories of common economic supervision and the science of law,the paper gives the economic analysis on the necessity and the core of the supervision of negotiable securities issue.Secondly,he expounds the three organic related components of the supervision systems of negotiable securities issue:the review system of negotiable securities issue,the pricing system of negotiable securities issue and the disclosure system of relevant information.The review system of negotiable securities issue reflects the value orientation of the supervision system of negotiable securities issue and also focuses on the idea of the supervision of negotiable securities issue.The pricing system of negotiable securities issue, which mainly reflects the function of modulation in the market,decides the function of determination of value in the market of negotiable securities issue and the exercise of resource allocation.And the disclosure system of relevant information is the basis of the review system of negotiable securities issue and the pricing system of negotiable securities issue,and it is also the basis of the whole market of negotiable securities issue.In order to take the case study systematically in accordance with the review system of negotiable securities issue,the author of the paper states the supervision system of negotiable securities issue for the review system of negotiable securities issue in most cases.Thirdly, after comparing the systems of negotiable securities issue supervision in the foreign developed stock markets with that in China,from the point of view of the institutional change,the paper points out that there's still too much nonmarketizational governmental intervention in the supervision of negotiable securities issue in China.As a result,we still have a long way to go in many aspects compared with the mature markets abroad,such as the function of the supervision of negotiable securities issue,the concepts of securities issue and listing,and the background of using sponsor system,etc.While evaluating the validity of the supervision system of negotiable securities issue in our country,the author does the empirical analysis studying on the outstanding achievements separately from the listed companies appearing on the market in the recent three years.Because of the limitation of the data obtained and too much work to do,the author does the empirical analysis studying mainly according to the data collected from the A listed companies appearing on the market in 2002.The conclusion drawn from the empirical analysis is that we cannot express optimistic view as to improve the validity of the supervision of negotiable securities issue in our country.In consideration of the above,the author puts forward some policy suggestions on how to improve the validity of the supervision of negotiable securities issue in the aspects of systematic environment and micro basis.