Research On The Preferred Stock System In China

This thesis selects the preferred stock, which recently has been put into force in our country while already applied maturely in other countries, as the object of research. Through the clarification of the concept, category and the nature of preferred stock, this thesis first analyzes the forms and reasons of conflicts of interest of the preferred stock. Then on the basis of legislation and case studies of the interest balance mechanism in United States and German, this thesis provides several legislative advices to improve the preferred stock’s interest balance mechanism in our country.This thesis is divided into four chapters apart from introduction and conclusion parts. And the content of each chapter goes as follows:Chapter One is based on the basic concepts of preferred stock and introduces the common categories of preferred stock. Through comparison with common stock and bond, this chapter points out that preferred stock is a hybrid security noted along with equity characteristics and debt characteristics.In other countries, the emergence of preferred stock brought about conflicts of interest which were unprecedented in the context of single stock category. Chapter Two then discusses the types of conflicts of interest and their specific manifestations, and analyzes the primary reason, significant reason and specific reason of conflicts of interest arising from preferred stock.Chapter Three, the "Comparative Law Research on the Interest Balance Mechanism of Preferred Stock", introduces that when dealing with the conflicts of interest, the interest balance mechanism the United States and German established in the legislation and case laws for reference.Finally, on the basis of studies and references of related foreign legislation and cases, Chapter Four puts forward several suggestions to improve the interest balance mechanism to preferred stock in our country. In view of the progress and deficiency of "Administrative Measures for Preferred Stock Pilot Management", this thesis puts forward several legislative suggestions from the perspective of both the basic principles and specific mechanism designs for our countries interest balance mechanisms.