Research On Duality Structure Of Stock Ownership In China Securities Market

The development and improvement of securities market in China play an important and positive role in the construction of the market system and the reform of the state-owned enterprise. But for many reasons, the securities market has many characteristics different from other mature markets in the developed countries. Among all the characteristics, the most typical one is the dual structure of stock ownership. The so-called dual means that stock ownership of the same listed company is divided into current shares and non-current shares. And the former can be traded in stock market while the latter can not. This kind of structure not only has seriously passive influence on the running and development of securities business in China, it can also affect many respects of an enterprise such as financing, merging and reshuffling, reforming and profits. In order to improve the resource allocation function of our securities market, to solve this dual has become an indispensable stage. How did the dual structure come into being? What's the main cause of it? How will it affect securities market? In this paper, the above questions are discussed and countermeasures are proposed to improve the securities market.The paper has four chapters. The first chapter is the introduction of the basic features of securities market in China and the definition of dual structure and its advantages, it also summarize and remark the achievements of the research of dual structure .The second chapter discusses the source and background of dual structure, considering that two main factors lead to the imbalance of the financial system structure in the late 80' and early 90' : Firstly, the bank dead accounts are so many and the risk is so high that it is hard to meet the capital demand for the reform of the state-owned enterprise; Secondly, the worries for the loss of state-owned capital. Chapter three covers the influence of the dual structure on other system arrangement in the system structure and the actions of the listed company. It considers that the duality structure leads to the popularity of the listed company "circling money", that sightless expansion and the insincere reconstruction recur again and again, that the listed companies gain low compliments, that perfect administration structure can't be built up yet. The fourth chapter deals with the meaning of the weakening of the dual structure and its significance. It insists that in order to make good use of the resource allocation function of our securities market, the dual structure should turn to single structure, and all the stocks should be traded in the stock exchange. At last, it proposes the proper suggestions on how to reform the dual structure.