A Study On The Investor Protection Before And After The Equity Seperation Reform

By giving consideration, the investor of non-negotiable shares can sell his shares in the market, so eliminating the difference between the negotiable and non-negotiable shares. Because the non-negotiable shares become negotiable, the supply in the market will increase, then we can anticipate that the price will decline and the first investor in the market will loss, so the non-negotiable shareholders have to give consideration to the negotiable shareholders to protect their rights.This paper, based on the theory of foreign investor protection, analyzes the performances of the violation of the investors' rights at the assorted shareholder time, such as the listed companies' false statement, the major shareholders' benefit transportation, inside transaction, market operation and the security companies diverting the customers' fund and so on. From the analysis of the consideration, the voting rights at the shareholders' meeting, the price performance, the revision of the plan, the increasing shareholding plan of the non-negotiable shareholders and the investor relationship management during the reform, we can get that the investors' rights have been protected. But there are some cases reported by the media that some listed companies and non-negotiable shareholders violated the negotiable shareholders' rights. The last part of the paper, modelling the experience of investor protection from the foreign markets and our own lessons, puts forward the proposals to perfect the investor protection systems, including clearing the goal of supervision, strengthening the regulatory of the inside transaction, market operation and information disclosure; perfecting the law system of the investor protection before and after violating; establishing the multi-level markets and the various transaction way, perfecting the structure of the investors and the risk sharing system; improving the corporate governance and standardizing the performance of the major shareholders, strengthening the investor relationship management and so on.Although the innovation has almost been finished, there are still many things to do to protect the investors. Just be continuing perfecting the investor protection system, can we protect the investors' rights better than before and promote the development of the capital market.