On The Legal Supervision To Reduction Of Large And Small-sized Non-tradable Shares

The reduction of large and small-sized non-tradable shares is the hot spot currently in China stock market. The reduction of Large and Small-sized non-tradable shares upsets a balance and accelerates the decline of the stock market and makes a great loss to investors. The function of fiancing of stock market is also set back by the reduction. Because both non-tradable shares reform and circulation of original non-tradable shares are legally valid, the validity of administrative policies to restrict the circulation of original non-tradable shares may be in question. To deal with a new thing- Large and Small-sized non-tradable shares, we should attach more importance to law regulation than administrative supervision. In fact, notwithstanding non-tradable shares reform and circulation of original non-tradable shares have countless ties with law, so when mentioning to supervision to reduction of Large and Small-sized non-tradable shares, the weapon of law shall not be dispensable.The full paper has been divided into 3 chapters in all.Chapter 1 mainly elaborates the background of non-tradable shares reform and the origin of Large and Small-sized non-tradable shares, analyses the problems caused by the reduction of large and small-sized non-tradable shares. Considering the advantage of weapon of law, pointing out the necessary of reinforcing the law supervision to reduction of large and small-sized non-tradable shares.Chapter 2 mainly elaborates the background and deficiencies of new large and small-sized non-tradable shares policies. Because supervisors are enslaved to the legal validity of non-tradable shares reform, the role of new polices promulgated by supervisors is limited.Chapter 3 mainly elaborates the scheme of law supervision to reduction of large and small-sized non-tradable shares. This chapter has two mainlines: Firstly, perfecting the policies to reduction of large and small-sized non-tradable shares on the base of current laws and regulations; Secondly, discussing the feasibility that investors prosecute the promisees for their betraying to promises made during the non-tradable shares reform, then attaining the purpose of restricting the reduction of large and small-sized non-tradable shares.