The Evolution And Revolution Of The Administrative Supervision Authority In China’s IPO Market

The paper starts with the summary with the historical evolution of the administrative supervision authority in China’s IPO market.Then it analyzes the problem of allocation pattern of administrative supervision authority in China’s IPO market.At Last it concludes that we should create conditions actively to transit to the Registration System in China’s IPO market after combining theory study with related foreign experience.In the first chapter,the paper talks about the administrative supervision authotiry and its historical evolution in China’s IPO market.The administrative supervision in IPO market is essential and significant,which is closely related to the issuing authorizing system.The issuing authorizing system of IPO can be divided into the Approval System,the Reviewed System and the Registered System. The administrative supervision authority in China’s IPO market experienced with The historical evolution of the Approval System and the Reviewed System,the market-oriented reforms continue to be advanced.After several reforms,the allocation pattern of administrative supervision authority in China’s IPO market forms with substantive examination by the Security Supervision Commission,market decentralization of the Sponsor System and market pricing of the Inquiry System.The second chapter of the paper summarizes and analyzes the foreign issuing authorizing systems.There are the Reviewed System and the Registered System in the world now.In America,the issuing authorizing system is the Registration System at the federal level,but the issuing must be examed substantively at the state level.Britain, Germany and other EU countries imply the Reviewed System.Taiwan has transited to the Registration System after a long-term reform. By learning the above-mentioned foreign system and experience, we can draw the following lessons:Firstly, the Reviewed System and the Registration System have their own advantages and disadvantages, so what system should be implied must accord to historical tradition and the status of the country’s securities market.Then the country should use its advantages and avoid its disadvantages, improve the relevant legal system to form a set of systems of IPO market which are suitable for the country. Secondly, the gradual transition from the Reviewed System to the Registration System need be based on their current situation of the IPO market and continue to create conditions for the Registration System,which can not be accomplished overnight.The third chapter is one of the focus of this article.This chapter analyzes the theoretical basis, the underlying causes,the external causes and the transition mode of the transition from the Reviewed System to the Registration System in China. The current configuration of the administrative supervision authority of China’s IPO market still exists some problems. According to the Registration System,the Security Supervision Commission’s power of administrative supervision of the IPO market remains relatively concentrated and also isn’t supervised adequately,which may led to corruption, psychological dependence of investors, the "acclimatized"of the introduced Sponsor System and Inquiry System,thus hindering the development of the IPO market.The information disclosure system, the unsubstantial review and the afterwards control system of the advantages of the Registration System can solve the problem of the allocation of administrative supervision authority of China’s IPO market in the process of reform.So it is the future direction of the reform of China’s IPO market.Changing from "administrative control doctrine " to "market-centrism doctrine" is the theoretical basis of the transition of the issuing supervision system. We should take a gradual approach to transit to the Registration System.The fourth chapter is the other focus of the article which talks about the measures of transition of the Registration System.Summarying the lessons learned from several reforms and studying the foreign issuing supervision systems and their transition modes, the direction of the market-oriented reforms of the China’s IPO market is gradual transition to the Registration System. The reform should be improved on the subject nature and the regulatory functions of the Security Supervision Commission and the total supervision system to create conditions for the transition.I In this paper, I applied both theory and practice,deductive method and comparative method to discuss how to improve the administrative supervision in China’s IPO market.