The Benefits And Losses Of Share-separating Reform In China

Share-separating reform in Chinese stock market is an important institutiona l reform,with the development of the reform, its impact is increasing. Discuss the benefits and thelosses of this reform is helpful for the fruit to grow,in the mea nwhile, it is also helpful toavoid mistakes. It is important to proceed the reform, to make the stock market develophealthily.Share-separating phenomenon is one of the institutional defects in Chinese stock market.With the development of economy, its shortcomings gradua lly revea led. There are ma ny veryserious outcomes caused by share-separating,such as our country's capital market has becomema ligna nt"misappropriating"the place ,the issue that company's tradable property rights doesnot clear, internal control issues, related party transactions, the phenomenon that the nontradableshareholders deceive the tradables. This article discusses various drawbacks ofshares-separating.Then illustrate that the best way to eliminate these drawbacks is conductingshare-separating reform. The reform is very significa nt.One of the losses of this reform actually make"misappropriating"more serious . Thepurpose of this reform to solve the ma ligna nt"misappropriating"is not realized. This articlebased on the empirica l analysis of the variables that ma y impact on the change of stock priceduring share-trading reform,imply that the reason causes a fall in share prices is not noncirculationof the ban. The panic in the stock market is the fundamenta l reason of the fall inshare prices. The stock market panic is caused by institutiona l investors, Their behavior tocircumvent the result further aggra vated the market panic.The root reason of the phenomenonabove is that the design of considera tion is unreasonable and is not sufficient to compensateshareholders's losses caused by market expansion. Further more, the article proved the panicdoes exists on grey correla tion analysis.The analysis result is the relationship between thestock index and the volume of non-tradable shares'circulation is close. Finally,the research ofinformation transmission on the stock market expla ins the reason how the panic generate.