A Research On The Reform Of Sub-owned Shares And Its Relative Legal Problems

Chinese stock market has developed into a certain size and has been playing an important part in the economic development of China since February, 1990. During this period of time, our politics is stable and our economy is growing fast and constantly. Especially in recent years, against the gloomy economy all over the world, Chinese economy has a single show. However, Chinese stock market hasn't grown with the stable politics and fast-growing economy, and instead, it has decreased since 2001. This decline which has lasted for 4 years doesn't match the fast-growing economy of China.To trace its historical reasons, when Chinese stock market was set up, sub-owned shares was formed by the special establishment of the stock share structure of the listed companies and the liquidity of different stocks. This phenomenon is inevitable and has its historical rationality, which once pushed the emergence and development of Chinese capital market. However, now sub-owned shares are resulting in greater harm and bringing more obvious contradictions to threat the healthy development of Chinese stock market and thus has become the greatest constrains against the farther development of Chinese stock market, which is a great problem and obstruction influencing the development of our stock market.Firstly, this article introduces the development, position of Chinese stock market and the reason of sub-owned shares. Secondly, the article shows the influence of sub-owned shares on nonnal running of Chinese stock market through the analysis of the condition of sub-owned shares. Thirdly, this article refers to the legal basis of the reform of sub-owned shares. Finally, this article explores the related legal problems during the reform of sub-owned shares. The author hopes it can benefit the construction of Socialistic market economy and legal system.