From The Examination And Approval System To The System Of Examination And Approval: China's Stock Distribution System

The dissertation makes a comprehensive study on the stock-issuance system in China by the analytical methods of the institutional economics. The whole dissertation consists of 4 parts:Introduction;The main models of the stock-issuance system of the world;The first step of the stock-issuance system in China-Reviewed and Approved System:Contents and Analysis;The current reformation of stock-issuance system in China and relative policy suggestions.In the first part,the connotation of the stock-issuance system is discussed. On the base of the definition about Institution in the institutional economics,it is pointed out that the stock-issuance system is a group of rules that dominate the behaviors and the economic interests in stock-issuance. Then the thesis analyzes four characters of the stock-issuance system in view of the new order institutional economics and discusses why the stock-issuance system changes after considering the relationship between supply and demand. The factors that determine the demand include the change of relative price of capital resources and the momentous technical breakthrough while only the government can supply the stock-issuance system. Finally,it is pointed out that the realization of the four basic stock market functions,including raising capital,transition mechanisms,improving efficiency of resources allocation and dispersing risk,mainly depends on stock issuance. So it is concluded that the stock-issuance system has all-round influences on stock market and it is very important to study the stock-issuance system.In the second part,two models of the stock-issuance system of the world,Approved System and Registered System,are illustrated. These two models are compared based on the analyses of characters,contents,advantages and disadvantages. It is found out that the commonness between these two models is the emphasis of the role and importance of information disclosure in stock issuance and the major differences lie in the law status of stock-issuance requirements,patterns of information disclosure principle and assumptions of investors' capability.In the third part,the thesis analyses the institution foundations of the reviewed and approved system in China's stock-issuance and bring forward the idea that it is the government-pushing economic growth model which induces why the reviewed and approved right of stock-issuance is controlled. In the infancy of stock market,the government's macro-control and strict checkup is urgently required for the reasons like the lack of completeness in legal system. Stock market was just a "experimental farm" in its infancy. In order to avoid the market out of controlling,we have to make "door-controlling". The juvenility in investment ideas and professional capability and the lack of integrality of information disclosure can only appeal to the review and approval of securities commission. The planned study system includes:1 .Government-leading mechanism in choosing issuers.2.Strict management of issuance quota.S.Two-level checkup system in stock issuance.4.Stock-issuance price decided by fixed P/E. The thesis pays more attentionon the excessive profits caused by the price difference between the initialand secondary stock markets. The lower price of stock-issuance roots fromthe lack of supply flexibility and the complex of equality structure caused byissuance quota.S.Coming into the market listing in series with stock-issuance.6.Rent-seeking activities and corruption.The dissertation analyzes contents mentioned above by means of dialectic method. Though the reviewed and approved system used to play a positive role,the shortcoming unveiled with the prompt development of stock market.In the forth part,the thesis discusses the institution foundations of China's approved system in stock-issuance. The elements include:1. Nation policies of stock market have switched from experimentation to development;2. Nation Economy and macro-control need a strong and well-developed stock market. 3. Non state-owned economy...