On The Legal System Of Supervision On Stocks Issuing And Listing Of Foreign Enterprises In Domestic Territories

Economic globalization promoted the development of financial globalization. Due to thedifferent levels of economic, the flowing of cross-border capital becomes the norm. Thecross-border securities issuing and listing is one important performance of cross-bordercapital flowing. And the cross-border stocks issuing and listing is the more effective andcommon way. The period of12th Five-Year Plan is very important to the development ofchina’s capital market reform. The construction of the “International Board” has been therecent strategic goal of ShangHai Stock Exchange. Attracting foreign enterprises to issue andlist in china will increase domestic investment channels, will help domestic investors sharethe management efficiency of the international foreign enterprises, will improve ourmulti-level capital market, will enhance the international influence and competitiveness ofchina’s securities market, which is inevitable to construct the powerful financial china.Protecting the interest of investors is the central aim of supervision system of cross-borderstocks issuing and listing, at the same time, we should take care of reducing financing cost offoreign enterprises and improving the efficiency of security market.The stocks issuing is the premise of entering the securities market. We need to establish areasonable stock cross-border issuing system to attract foreign enterprises. In accordance withthe provision of “Corporation Act” and “Securities Act”, there are no legal obstacles aboutforeign enterprise of cross-border stocks issuing. Accurate definition of foreign enterpriseswill promote fair completion between domestic enterprises and foreign enterprises, and willpromote the return of the “red-chip company”. In order to attract the real foreign company toissue in our securities market, we should make up a compound definition standard of foreignenterprises. The international vulgate regulatory rules of the stocks issuing are approvalsystem and the register system which have its’ own advantages and disadvantages. Accordingto the present situation of our securities market, our cross-border stocks issuing supervisionshould insist on taking the approval system and the discrete supervision model of securitiesissuing and listing. Try to perfect it in practice.Attracting foreign enterprise to issue and list in china, we should establish a reasonablesupervision system of cross-border stocks listing. The current supervision methods ofcross-border stocks listing are “Higher Entry Thresholds, Lighter Obligation” and “LowerEntry Thresholds, Heaver Obligation”, and with those two methods there is “Differentiation Supervision method”. These different regulatory methods are summed up by every stockexchange in the development process of their domestic securities market, which have bothadvantages and disadvantages. According to the circumstances of economic development andthe degree of securities market development of china, our supervision methods ofcross-border stocks listing should be “Higher Entry Thresholds, Lighter Obligation” and“Differentiation Supervision method”, and make stricter listing conditions. On theinformation disclosure, we should insist on the current disclosure rules and continue to perfectthe forward looking of the disclosure content.The cross-border stocks issuing and listing will inevitably involve multiple legal rules ofdifferent countries or regions. There must be differences in the relevant rules, which formedthe conflict of law on the cross-border stocks issuing and listing. There are the conflict ofcorporate governance, the conflict of protection of shareholders’ right and the conflict ofinformation of disclosure, which should be well coordinated. Under the guidance ofsubstantial effect principle and additional conditions principle, we need to strengtheninternational cooperation and use mutual recognition system and international uniform systemto coordinate the conflict of law on the cross-border stocks issuing and listing.