Reform Of The Chinese Stock Market Ipo Market

The issuance of stocks on China's securities market has developed for ten years. After issuance by lottery from subscription forms, by lottery from deposit receipts, by online price competition, online fixed price lottery and other forms, "Securities Law"is officially in force on 1st July, 1999 and it requires that the issuance of stocks should be based on check and approval system. On 17th March 2000 "Check and Approval Procedures of Securities Issuance"comes into being and in the same time publishes "The Provisional Regulations of Securities Issuance and IPO"which brings forward that any company should participate in a one-year learning course on how to enter the stock market before it applies to be listed on the stock market. The promulgation of these two important regulations signifies that the marketing reform of new share issuance has entered an implementation process. The reform in which issuance of more new shares is put into trial operation has unveiled the reform of the new share marketing process. Therefore we regard 17th March , 2000 as an important time divide. Before it the issuance system of China's securities issuance is based on check and approval system. The marketing reform of new share issuance refers to the relevant problems concerning the approval of enhancing and implementing the check and approval system.First, the Characteristics of Check and Approval System and its DefectsSecond, Main Content and Objective Analysis of Marketing Reform of New Share Issuance ModeThird, the changes and challenges brought by the new share issuance marketing reformFourth, control the pace and regulate the market in a macro way is an important means to realize the function changes of supervisory departments and completion of new share issuance marketing reform. All in all, the issuance system of China's stock market will in the long term be regulated with policies based on check and approval system. When the condition is ripe, it can transit to the check and approval system of market regulation.