The Research On Consideration RatioSolutions To The Equity Division Reform Of Listed Companies In China

Because of historical reasons the listed company interior generally went on to form non- circulation stock and the circulation stock two kinds of stock in the China stock market. This has resulted in the system and structure of the market which has two types of shares of stock with different prices and power. This phenomenon is called "equity division." The equity division of China's listed companies is the product of special conditions and background and is the combination of many historical factors. And it is also the system flaw which is caused by the inefficiency of economic reform and the unreasonable design of the system of the stock market. With the constant development of the securities market the flaw of "equity division" system appears day by day.To solve the "equity division" problem and let non- circulation stock turns to circulate inevitably involves that the non- circulation stock shareholders pay the consideration to the circulation stock shareholder for the circulation rights.Therefore, the. theoretical basis of consideration, the level of payment and otherissues have become the focus of debate among various stakeholders.Because government stipulates the rules of procedure during the period of the equity division reform this time, the research of theory basis and the payment level rationality of consideration will play an important role when we analyze programs of listed company during the revolution of equity division.At the beginning in this paper,we discussed the resource of the equity division,and then we analyzed the basical theory of equity divison and payment.Finanlly,we toke an example of sinopec.The reform of equity division will affect government regulators, investors, capital markets and corporate governance postivly and deeply.