The Reform Of Non-tradable Share And The Development Of The Security Market In China

Non-tradable share is a concept which derives from selling down of state shares and share circulation,and is a defect in the system of china security market as a result of history questions.In recent five years,it has been bear market that made our security market beset with crisis:There are remarkable indications that GDP of China went up steadily while share prices went down at the same time.Take Shanghai Stock Exchange share index for instance,it declined by 50 percent from 2245 points to 1000 points,which largely reduced the market value and made small investors feel greatly frustrated and finally direct financing inaccessible as well.On the other hand,credit crisis arise from many credit-missing deads,such as delivering fake financial statements by listed companies and doing business unreasonable by big shareholders who care few firm performance but more money enclosed.Therefore,lots of investors begin to suspect the credit of decision-maker of companies,which leads to the decreasing effects of policy market.Meanwhile,the government authority is faced with big challenges,and financial institutions and dealers suffer huge loss from this,and subsequently,financial risks increase.Concerning all the situations mentioned above,security market has become a place which cannot indicate national economy state,which can't bring benefits from the reform and development of china for its participants and which has even lost high-quality resources like quoted companies and investment funds and lost the function to discover value and the fortune reallocation. In brief,China security market has great difficulty stepping forward. The problems accumulated in the security market have greatly hindered the development,which attracted wide attention from all walkers of society.Among all these problems,the non-tradable share has restrained the regular development of china capital market and the fundamental transformation of the management mechanism of state-owned assets.So,decision-makers,supervisors,scholars and market investors have reached a consensus that changing the existing state of non-tradable share is extremely urgent.This paper attempts to make an analysis If much harmfulness produced by the non-tradable share reform in the normally developing security market.This analysis focuses on the characteristics of the non-tradable share reform,the consideration and the essential distinction between the first two reforms(namely selling down of state shares) and this one.Combined with the plans drawn up by some companys which have accomplished the non-tradable share reform,the paper studys how to improve the comsideration quality and also puts forward some rationalization proposals for those that haven't fufilled in terms of illustrational analysis and statistical analysis.In addition,the paper explores the influence exerted by the share circulation in the whole security market from the shallower to the deeper.And seeing that how to push forward China security market from the aspect of system innovations in the later period of non-tradable share reform or after the share circulation,some suggestions are given in the end.