Red Chips Listed On The Legal And Regulatory System To Ascertain

It has been a strong desire of capital for most Enterprises in every stage of its growth. It is one of the effective ways to make a leap in its growth to raise money in the capital market. In recent years, enterprises attempt to go to public to launch their fund raising activities abroad due to the incomplete growth of domestic capital market. In which, the Red chip with indirect listing model is the most popular way. Whereas, the red chip listing model shall escape the legal observation and result in the situation of Tax Avoidance, Tax Evasion, Money laundering, Capital Loss and so on. These may possibly damage the existing national property and Financial Security System. Therefore, the national Supervisory sector has been issued relative policies in succession. This paper will focus on the Supervisory Legal system of Red Chip listing. The author adopted the comparison, classification and inductive approach to access the inefficiency and the fractures of the observation system of Ride Chip listing model practically and provides few improvement ideas. There are five chapters in this paper as follows:Chapter one is the summary of the Red Chip Listing Model. Firstly, the author analyses the concept and the factual reason of the formation of the Red Chip Listing Model. Then it indicates both positive effects and side effect of the red chip Listing Model brought to our nation, which triggers off the following chapters.Chapter two is the introduction of our existing legal Supervisory situation of red chip listing model. It has been distributed into three parts, the first party is the review of Red Chip Listing, which chronically gives the brief view of the content and background of Red chip listing model in early expired period. The second part indicated our existing supervisory system which chronically introduced the background and brief information of exiting supervisory regulations. The third part briefly analyzed existing deficiency of the supervisory legal system from a rather macroscopic perspective.The following two chapters analysis that the problem encountered in the existing supervisory regulations and provides more possible advises from two different trends of capital flow as capital outflow (i.e. offshore investments) and capital inflow (i.e. Round-tripping Capital) perspectives.Chapter Three provides more details of the existing problems in our offshore investment supervisory regulations from capital outflow perspective of Red chip Listing. The section one briefly indicated the existing offshore investment supervisory regulations related to Red chip Listing Model. The second section critically accesses the innovative character of recently promulgated offshore investment supervisory regulation. Finally, the author pointed out the problems in the existing offshore investment supervisory regulations and provides suggestions.Chapter four critically accessed the Round-tripping Capital supervisory regulations from capital inflow perspective of Red Chip Listing Model. Section one is the introduction of the concept of Round-tripping Capital. The section two indicates the Round-tripping capital model and critically accessed, and suggests that the key point is the supervisory model. The third section critically accesses the existing supervisory regulation of round-tripping capital from practical perspective and finally gave suggestions.Chapter five provides few possible suggestions to improve our existing supervisory regulations of red chip listing model from rather macroscopic perspective. There are two sections in this chapter, which respectively provides advises to improve and furnish the supervisory of red chip listing model from legal observation and from marketing observation perspective.