A Study On The Legal Precaution Of China 's Preferred Stock Risk

With the enactment of the measures for the administration of the pilot preferred, the topic of research preference system caused great concern again. For a long time before, most of the relevant experts and scholars for the preferred stock issue in assuming and guessing stage, and now that these issues have a clear set of legal provisions. While we see preferred stock system brings gains for the stock market, we have to recognize the potential risks inherent in the system of preference shares. Compared with the risks of common stock, preferred stock risk is more flexible and covers a wider range, affecting more distant. Therefore, we need to improve the legislation system of preferred stock, strengthening market supervision mechanism, only such preferred stock could inject a capital market "clean" fresh blood.Preferred stock system is a new financing system, prior to the company law and the securities law involved, but just in a nutshell. The introduction of the measures for the administration of the pilot preferred, people have a more in-depth understanding of the concept of preferred shares, but also specific developments for preference shares is relatively unfamiliar. The second chapter of this article summarizes the current status of China’s preferred system, so that we can clearly have a better understanding and grasp about preferred stock system development in our country. This article first lists the present situation of preferred risk and risk analysis of defect on preferred shares, and expounded thenecessity and importance of preferred risk, pave the way to draw out below. The third chapter of this article is to analyze the specific risks of preferred stock,including: specific performance of preferred stock risk, reasons about the risk of preferred stock and the impact of preferred stock. The fourth and the fifth chapter is the core content of this article, The fourth chapter introduces prevention of preferred shares risk system,the idea is to start from the analysis of two legal representatives of the State. Fifth chapter is the study of the legal system of preferred risk prevention, Primarily on the basis of our country’s stock market,put forward relevant preventive measures. The reason why I make a statement from abroad to the domestic,is that foreign mature system of preferred stock have the necessary precautionary reference.