Research Entity Equity Of State Shares Reduction

State shares reduction is an important problem which hinder our Country’s economic development.How to implement the state shares reduction? And how to improve the socialist system with Chinese characteristics? We need to further explore. State shares reduction both an economic issue and a legal issue. In the Third Plenary Session of the 18 th Central Committee of the CPC, the focus of reform is deepening economic reform. Market is the decisive role in allocation of resources. At the same time, our country should uphold and improve the basic economic system, modern market system and the open economic system. In the Fourth Plenary Session of the 18 th Central Committee of the CPC, the important thing is to promote the rule of law and implement the legal theory of socialism with Chinese characteristics. In such an opportunity for both economic and legal, improvement of state shares reduction is important.For now, the main research direction of state shares reduction is the way of reduction and the shares pricing. They ignore to protect the rights of the subject. However, the rights of subject is important for state shares reduction. Therefor, this article is about the rights of the subject in state shares reduction which makes up for previous study.This article is a research foundation of state shares reduction. This article takes the form of literature studies. Through researching the past literature and social reality. We can explore the state-owned shares further. Making state-owned shares more responsive to the needs of the market and the state. From the state shares reduction’s research point, the way and range need to be further developed. But, state shares reduction may damage the rights of the subject. The subject may be government, state-owned shareholders, tradable shareholder and creditors. Therefor, we need to improve the legal system in state shares reduction.This is about the rights of the subject and the function of the oversight body in state shares reduction. The main explanation is about the protection problem of the subject’s rights and the problem of the oversight body’s power. The country own the shares, but also have the supervision. The right of the subject may be damaged.This article is about the protection of the subject’s rights in state shares reduction from legal point of view. This article is important for addressing the plight of state shares reduction and adhering to the people-centered.