Chinese IPO Registration Reformation Law Study

Chinese IPO Registration Reformation is an important process in the area of stock market. In this process, we should both learn from other countries and concern our own circumstance. The United State is a typical example, whose experience is very valuable to us. In Chinese stock market, considering that retail investors are lack of the ability of risk identification and acceptance, they may suffer losses from IPO Registration System. Therefore, we need to solve investor protection problem before we implement IPO Registration Reformation.We can settle investor protection problem by introducing rights of consumers into IPO. But in this way, market entities must undertake more cost and risk. We must classify the investors according to their investment abilities to reduce market entities’cost and risk. Therefore it is feasible to give investors the right of customers.In IPO Registration Reformation, we should give all investors the right to know and give investors who lack of investment abilities the right of punitive claim. To protect the investors, we should focus on three aspects:Firstly, improve the legislation of the right to know and adjust the information disclosure system, while confirm that the investors have the right to know in the Securities Act.Secondly, adjust the power and responsibilities of Security Regulators and intermediary agencies. Withdraw Regulators’authorization of rights of investigation to market value, and authorize them some relevant legal enforcement power to regulate the quantity of security product. We should authorize some intermediary organizations to regulate market, such as estimating the market value.Lastly, we should establish the complementary mechanism. We can learn from European’s experience to definite qualified investor and unqualified investor in our stock market. And we can establish the investor eligibility system in main board market.