A Research On Share Merge Reform In China At Present

On April 29,2005,the issuance of "Circular on Issues relating to Pilot Reform of Listed Companies' Share Merger Reform",by China Securities Regulatory Commission,signed the official start of "reform of share merger",and which has been thought as "milestone" in the history of China's securities market.Every side expects the success of "share reform" can facilitate the healthy development of China's capital market.The China Securities Regulatory Commission held that "the share reform had roughly succeeded" on Dec 26 in 2006,and "the capital market was experiencing the turning point change".But since 2007 October,the stock index has sharply declined from 6124 point to 1664 point within only one year,the confidence to market is extremely weak and the capital market cannot normally function.This dissertation focuses on the profound institutional analyses into share reform and tries to quest the institutional deepening path of it.In view of the origin of non-tradable shares institution,the share merger reform was carried out under the background of the "step by step" transition reform. It has inherited the "increment reform" path and chosen the interim institutional arrangement.The reform not only has insured the absolute share control of the state on the listed state-owned enterprises and isolated the state assets from reducing because of the circulation of originally non-tradable state shares,but also augmented the financing channel for state-owned enterprises and most importantly,afforded development opportunities to Chinese stock market.All of the above have historic rationality and inevitability.For the share merger reform is the makeshift in special stage and the concession of market mechanism to planned mechanism,so the negative influence will increasingly apparent with the development of capital market.The negative influence mainly embodies in the restrict of fundamental function exertion of capital market and the torture and harm to the participating entity,while which give birth to the endogenous demand of share merger reform.The reform has to submitted the time sequence of macro economy and financial reform,but the exogenous demand of share reform has been neglected for a long time。Among the exogenous demands,the demand on advancing commercial bank reform is the key factor for the essential start-up of share merger reform in2005,and which also illuminate the compulsion character of the institutional evolution of share merger reform.In the first stage game of share merger reform,the shareholders of non-tradable shares,in the process of bringing forward "consideration",did not fully take account into the benefits of shareholder's of tradable shares,so there apparently were the "anchoring and adjustment" behavior biases.Though the historic costs paid by the shareholders of tradable share in different enterprises significantly differ in contrast to the circulation shock from non-tradable shares,which was not fully embodied in the "consideration ratio".The "anchoring effect" in this dissertation reflects the injustice for the consideration game from one side.While the shareholders of non-tradable share in hence have retrenched the consideration game cost and gained the positive incomes outclassing the income of non-tradable shareholders,which will have disadvantages in the long-run development of listed companies without the construction of benefits consistency for all shareholders.The share reform now is far from "roughly succeeded",there are momentous defects in the first stage of institution arrangement,and which mainly embodies in the huge suppress of "large and small non-tradable share" on confidence in market.The government should act as the "elementary action group" in the deepening of share merger reform,while the ultimate settlement to "large and small non-tradable share" problem is the necessary condition of the success of institutional deepening.There isn't theoretical obstacle to the governance of share reform contract in view that the share reform contract is the long-run and incomplete relationship contract.So in the precondition of confirming the necessity to the share merger reform,the nuclear countermeasure for deepening share reform,the "large tradable shareholders' promise",brought forwarded in this dissertation is the improvement of momentous defects in the first stage institutional arrangement of share merger reform.