The Impact Of State-owned Shares Patterns And China's Securities Market And Corporate Governance Structure

State Owned Shares Reduce Holded (SOSRH) will be the major element that pushing forward the state economic especially in the market economic reform. For the historic reasons, State Owned Shares Holded Right (SOSHR) has a higher rate at the enterprises, which relate to the waste of state resources controlled. And the shortage of internal management structure in enterprise also occurred because of the lack of investings. The unreasonable share holded right structure of listing companies and the higher price of share or higher rate of return on invest also caused the arguments within internal and external security market. It should be a serious test for the social walfare system in China, in which due to the strong compete from domestic and oversea , the pressure from the unemployment, and the compete from the entry WTO by China. In further, author wish to apply a proper method to transfer the state owned shares capital into social walfare function in this issue.Gethering the reasons the SOSRH has been treated as a state level strategy in the report of 15th Committee of China Communist Party. Therefore a multi discussion has been taken by the national academic, and four major theories have been given, the transfer theory, the currency theory, the adapt theory, and the general theory. Due to the weak capacities of domestic security market, author in this issue suggests that the general theory should be the basis theory then apply plan sale, repurchase and transfer methods, to solve such historic propblem.During the argue period, the SOSRH gradually be introduced by relevant state managemnt levels. The first test was a plan sale and taken by China Jialin and Qin tyre in 1999. And the second test was a new share publish , and de-holded storages when adding published on June 2001. The first defeat refered to the tested companies choosed the unproper method and the higher price of plan sale. The late defeat thus refered to weak rate of storage of state owned shares, 10% in each. Furthermore , the tests could only remained their four monthes life circle due to the unstable security market, and China Security Inspected Committee had decided to stop in finally.SOSRH should be an complex and hard project, lack of present experiences and the limitation in each method inform that a long-run work will be given. Due to the entry WTO and times reasons, author in this issue therefore suggests SOSRH should reach to two goals. The short-run goal applies to make an contribution to the weak social walfare capital units, and the middle & long-run goal refers to solve the unresonable internal management structure in the listing companies. And the late goal will be the premier section for the SOSRH. For the unreasonable pricing pricipia of SOSRH thus an unacceptable had been taken by the market, and therefore the pricing pricipia should be the major element within the SOSRH applied structure. Author argues that the net asset basis pricing method must be the proper way to solve such problems due to the unstable share price, such as the unregular add-value of net asset. And thenet asset basis pricing method also could make an contribution to the full-run reform of state economic system.It could possibly to select the proper methods which basis on the pricing pricipia to meet real market requirements. And SOSRH thus will not again delive a bad affect to security market and other relevant economic sections in China.Recently China Security Inspected Committee informed that it would collect methods from whole nation. Mainly for the SOSRH reason , author will also argue the proper theories and methods to meet this environment in his whole issue.