| In 1992 , it was stated in Practice for Experimental Joint Stock Enterprises that the state-owned shares (including the national shares and the state-owned corporate shares) should not be listed at the time. It had been under practice for several years before 2005 and is the problem that hinders the development of Chinese securities market. On April 29, 2005, China Securities Regulatory Commission has issued Notice on Reform of Share Split in the Experimental Listed Company. On Sept. 5, 2005, Management on Reform of Share Split in the Listed Company was formally issued. It means that the reform of share split, which leads to stock split in the Chinese securities market,has been comprehensively carried out. Share split defines whether the A-share of the listed company can be divided into float share and non-float share in the securities stock exchange. It is the special problem in Chinese transformation of economic system. Reform of share split means to, through a series of systematic arrangement and change, change the fact that part of shares of the listed company are listed for exchange while other part of shares are not listed. It is to make the shares not listed at the time (non-float share) capable of circulation in the market. Reform of share split is the change in contract on the non-float share to be listed and circulated between the float shareholders and the non-float shareholders. It involves re-assignment of the national capital, foreign capital and the nongovernmental capital and involves the basic civil and economic system. It shall be ram the foundation for the law in terms of special law while not be implemented through notice and document from the administrative office. Success in reform of share split will make our securities market on the way to healthy and sound development and recover the equal stock principle and equal shareholder principle of the listed company. The paper studies the law problems in our reform of share split and suggests the relevant legislation. |
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