Inner Mongolia Huadian Split Share Reform Program Design And Implementation

The crisis of capital market is booming in these years, though the economy of China is developing dramatically. After all, the disadvantage of share-allocation system is the major reason for it. The beginning of reform for it in April 29th 2005 is a vitally important fundamental innovation for China capital market."Inner Mongolia MengDian Hua Neng Thermal Power Corporation Limited" (hereafter called "IMH" ) is the first enterprise to come into the market in Inner Mongolia province. The reform of share-allocation system began in Feb. 2006. The author was the vice director of the group responsible for it. This article is focusing on explaining and analyzing the theory, practice, design and implement of share-allocation system for IMH.In the initial stage of China stock market, the government set up the system of share-allocation system by the administrative way. That means the listed company shares are divided into two parts, namely circulated and non- circulated shares, according to whether it could be transacted in the stock market. Nation-owned shares and corporate shares will not be transacted in the market temporarily. Then this special problem is occurred in the process of China economy system reform. The risk of speculation in this system is very high. The benefits of circulated and non- circulated shares are diversified, or contradictory. The control power of listed company can not be transferred in the stock market. From above, the stock market suffered depressed in the past four years. The purpose of share-allocation system reform is to make all shares ventilated, to make the capital market more fair and efficient. If so, the investment in industry and in stock will be unified. The stock price will reflect the value of control power in the listed company, the investor structure...