The Study Of The Legal Problems In The Revocation Of The Approval Of Public Issuance Of Stocks

The case of TONGHAI High Technology Co. Ltd is the first one on revoking the approval of public issuance since securities market is built in China. Based on this case, there are a series of problems we can find from concerned laws.First, this article analyses the system of stock offerings in China. While we exercise the authoritative system for the application for stock issuance and the Securities Regulatory Commission has the final power for decision, we are going on the revolution routine of marketing, so the effect of administrative act should be weaken and the stock value should be judged mostly by the investors.Second, it analyses the limit factors to approval revocation. Though the new securities law regulates that the power of approval revocation will not be exercised if the stock has been issued, even if the stock isn't issued, we should also think of the limited factors, such as reliance interest, public interest, the degree of violation and prescription.Finally, it analyses how to relieve the investors after the approval has been revoked .In this case, the problem is solved through administrative acts, but on the way of legalization, the normal state is the investors should be compensated via litigation way. Present regulations of civil tort action on securities limit the investors to exercise the right to bring a suit against concerned bodies, so they are must be bettered and completed.