Research On Legal System Of Preferred Stock In State-owned Holding Companies

Three decades of reforming and opening-up, China ’s rapid economic development, thedeepening of economic reforming, as the economy in the form of special and important group——the state-owned enterprises are relating to economic development,to invigorate the stateeconomy, state-owned holding companies plays an extremely important role in the nation andenterprise.We are currently in the development of all walks of life for preferred stock systemto hold fairly conservative approach, steadily, the easier approach for the implementation ofthe new system is understandable, after the establishment of the system to optimize theexternal environment and supporting measures perfect, the challenge of the upcomingfollowed. There is no one system is absolutely perfect, and some of the problems of theirown preference system.we have a special way to avoid and break some restrictions preferencesystem more responsive to develop the state-owned holding company, so making acombination, also in need of financial market repeatedly demonstrated, in a market test, thedata support, in order to confirm whether the preference system for the development ofstate-owned holding company.Limited to the impact of China’s capital market development process and marketenvironment, our preference system has been interrupted for theoretical exploration stage, butwe can not deny preferred stock as a means of financing and market varieties, having beenprevailing in the international market for many years.In our country into the world economyflood tide process, preference system can definitely say more good than harm, in our countrypreference system in the economic sphere, now can be said to be popular, multi-faceted pilot.Display various information collection,Some listed banks are actively carrying outpreparatory work for the pilot ’s preference shares, the Commission, the CBRC jointlydrafted the guiding idea to facilitate the process of preference system.State-owned banks,large insurance companies to promote the various preferred stock issuance system has naturaladvantages in large state-owned companies, all kinds of information display, China Building,Poly Real Estate are gearing up for the issuance of preferred stock, which will eventuallybring the capital market change. The main body of this paper consists of three chapters, the first part is to introduce theordinary meaning of state-owned holding companies and preferred stock system, the currentdebate in academia, the operating in reality and theoretical basis， the second chapterintroduces the current plight of the state-owned holding companies in the theoretical andpractical aspects; the last chapter is the recommendations of improvement of thestate-owned holding companies’ preferred stock system.The introduction of this paper to explain the background and purpose, current researchand some of the advanced experience of successful papers. Preference system is not what anew system, but it is very easy to use system, advanced foreign development experience,local conditions, especially combined with current development of China’s State-OwnedHolding Company owned economy, so there is reference to the reasoned preference systemdevelopment of state-owned holding company.The second part focuses on the plight of the current State-Owned Holding Company inthe theoretical and practical aspects encountered. Institutional imperfections, gaps in law,creating a barrier in practice, which are restricting the preference system in State-OwnedHolding Company lag to break this situation in the development.we need to find the crux ofthe right remedy, clearing the priority shares in state-owned holding company systemdisorders in.The third part is the introduction of State-Owned Holding Company to implement aseries of preferred stock system improvement recommendations. we can learn from advancedforeign experience on preference system and we have some of our own reality, theState-Owned Holding Company for our preferred shares from the legal system, institutions,practices, regulatory and other aspects to be improved,paving for its development flatroad.This part from different legal systems in different countries abroad contrast Preferredways of application, compared to draw some of the practice we can learn from the legislativemodel, made from the internal operation mechanism and external management tools forState-Owned Holding Companies to issue preference shares general rules and specialprograms, down to some of the specific details, and also look to the future issuers andbuyers can be draw to avoid their own risk.