The Innovation Of China's Corporation's Governance In The Innovation Of Non-tradable Shares

In foreign stock market, shares in corporation can circulate in the stock market freely. As in China, situation is much different. In 1990s, when the stock market firstly began to develop, as a result of the design of the system, stocks were artificially compartmentalized into three different types, which called state-shares, corporative-shares and social-shares. State-shares and corporative-shares were in legal congealed. They can't circulate in the stock market. Only a few social-shares can circulate freely in the stock market. Therefore, China's corporation which can come into the stock market is incomplete from the beginning. Its shares are divided into tradable shares and non-tradable shares. Corporate governance in China based on a contorted shares structure form the beginning. Non-tradable shares is the fundamental reason for the malpractice in corporate governance. Via the innovation of the non-tradable shares, we can solve existent problems in corporate governance from the fundamentality. However, the innovation of non-tradable shares is just a premise in consummating the corporate governance in China. Except for the innovation of non-tradable shares, we still need more corresponding measures to solve the problems in corporate governance engrained.This paper comprises six chapters on the research of how the innovation of non-tradable shares brings effect on the corporate governance.Chapter one: Via defining corporate governance and introducing the two typical...