The Analysis On The Game Theory Of Consideration In The Reform Of Non-tradable Shares

Split share structure is a unique phenomenon of China. It means that there are two different kinds of stocks in the Chinese stock market. These two kinds of stocks have different prices, profits and rights. It was influenced by the China's planned economy system and the market system at the beginning of the stock market formed. Because of the existence of this phenomenon, China's securities market has some disadvantages about the financing function, pricing and resource allocation functions; it also makes the further development of the market lack basic infrastructure. From 1992, the management has repeatedly attempted to solve this problem, but it was failed for various reasons. However, on April 29th, 2005, the stock supervise committee of China promulgated a document and begin a new exploration of comprehensive settlement of the shareholder structure.It will use the market pricing, give full consideration to the shareholders' interests and give shareholders enough right to speak in the reform. Whether the reform program can implement depends entirely on the tradable shareholders' attitude. So the non-tradable shareholders must consider their benefits. Because the"consideration"is the compensation that the non-tradable shareholders give to the other shareholders, the quantity and the method of the consideration are the basis of the reform. The rationality and the fairness are the key to ensure the completion of the reform. So we should explore the issue of"consideration"in the reform of non-tradable thoroughly.The consideration is an important concept in Anglo-American Contract Law. it is a promises that a prison pay for another to obtain his promises to do something. But for China's reform, there are two kinds of point of view about...