Study Of Chinese Listed Companies IPO Reform

The system of Initial Public Offering (IPO) in China has made rapid progress in the past twenty years. Every reform in the past happened in the market environment, to modify the supervision modes, the issuing modes or the pricing methods for the better use of the resource allocation function of the market. Some modifications not only succeeded, but also led the reforms later on. Some modifications met the market demands, but some made the tough market environment even worse. Although it has been through many reforms, there are some flaws still exist in China’s securities market IPO system:including the absence of IPO regulation system, Incomplete stipulated by the regulatory body, disunity in IPO regulation,The sponsor does not fulfill his responsibility, The current regulation is way behind the development of IPO. In order to ensure the stable operation of the securities market, in June2013,Securities Regulatory Commission published Opinions on Further Promoting IPO Reform which has five revolution activities that have solved partial problems in practice,but also cause new contradiction:first of all, lead underwriter has right to selected on his own, may causes bribery and corruption. The priority to obtain for the agency investor is quite unfair. The registration system has promoted while the condition had not mutual yet.As the current IPO system has moved towards the direction of giving more protection to the medium and small investors, we believe that we shall promote the share issuing registration system actively and cautiously while we should solve the unfair problems that happen in issuing new shares and make sure the issuers and agencies to fulfill their responsibilities. The details are as follow:First of all,we should put the subject responsibility into practice and make sure that both publisher and intermediary will fulfill their duty. At the same time, we should keep promoting the information disclosure and make sure its authenticity, completeness, exactitude and timeliness. It is necessary to prevent IPO with unfair information and packing, and discover as much as possible information which may affect the investor’s decision. Secondly we need to promote the registration system in background which has complete legal regulation, fully exposure system and all the parties act normatively. Thirdly, we need to cancel the privilege of agency investor and offline placement. Last but not least, it will maintain "Honest, Justice, Public" through those limited privilege. Only with adopt diversified comprehensive treatment, can we achieve the goal of further improving social economic development level,we shall adopt a series of the comprehensive governance mechanism to improve the operating efficiency of the securities market, and take full advantage of the resource distribution.