The Research Of China's Regulation System Of The Market For New Stock Issue And It's Validity

The regulation of new stock issue is the first threshold for listed companies' coming into the market, and it has the vital impact on the regularity and development of the stock market. Domestic literatures concerning the regulation of new stock issue mainly concentrate on description, and few of them use empirical analysis. The methods of empirical analysis used to evaluate the validity of American's regulation system of new stock issue in the foreign literatures are not suitable to be applied to China's market for new stock issue. This paper tries to use a proper method of empirical analysis to evaluate the validity of China's regulation system of new stock issue, in order to evaluate it impersonally and equitably and to give the corresponding advice based on the conclusion drawn from empirical analysis.The paper includes five parts. First, based on the theories of common economic regulation, the paper gives the economic analysis on the necessity and the core of regulation system of new stock issue. Secondly, after comparing the regulation systems of new stock issue in the foreign developed securities markets and that in China's securities market, the paper finds that there's still too much administrative intervene in China's regulation system of the market for new stock issue. Thirdly, the paper evaluates the validity of China's regulation system of new stock issue from two aspects. One is the change of listed companies' outstanding achievements before and after coming into the market, the other is case of transgression in the market for new stock issue. The conclusion drawn from the empirical analysis is that China's regulation system of new stock issue is not valid. Fourthly, the paper gives five pieces of advice based on the conclusion above. Fifthly, the paper points out the limitation of this research and the direction of further study in this field.