From The Authorizing System To Register System: The Stock Issuing System Reform In China

Since the birth of the China’s stock market, stock issuance system in China have gone through several reforms, from local approval system to the credit administration, and then to the index management; from the channel system to the sponsor system, then from approval system to the registration system. Throughout the evolution history of China’s stock issuance system; its nature was marketing process of capital markets. Third Plenary Session of the 18 th CPC Central Committee noted that improving the financial market system, improving the multi-level capital market system and promoting equity issuance registration system reform, which clarified direction of reform of China’s stock issuance system.This paper was divided into five parts. The first part was introduction; the second part was the evolution of China stock issuance system; third part was international comparative for China stock issuance system; fourth part was the efficiency analysis of China’s stock market reform issuance system; fifth part was reform path of China stocks issuance registration system.The first part, clarified the background, purpose, writing ideas of this research and organized the relevant literature review on the stock issuance system reform;The second part, defined the concept of stock issuance system and described the contents of China stock issuance system; meanwhile, it combed the evolution of stock issuance system in China. In this part, author summarized evolution of China stock issuance system as four stages, namely the administrative approval system, the channel system under the approval system, sponsor system and the transition phase from approval system to the registration system.The third part, introduced the stock issuance systems of the United States, Japan, Britain, Germany, Hong Kong and Taiwan and other countries or regions and made international comparison for them. At the same time, author analyzed differences between the China stock issuance system and the international by the Initial Public Offerings in the United States of Alibaba. Author believed that whether it was registration system or approval system, they must be based on information disclosure and effectively protected the interests of investors.The fourth part,we analyzed market efficiency of China’s stock issuance system by the four basic functions of the stock market(price discovery, resource allocation, direct financing, and wealth management). Statistical analysis showed that market reform of the stock issuance system was efficient. From the trend, efficiency of pricing, resource allocation, direct financing and wealth management for IPO in China continues to increase.The fifth part, author proposed measures of China stock issuance registration system reform from the legal basis, issuance examination efficiency, pricing efficiency, placement method, protect the interests of investors and other aspects. Finally, the author gives a preliminary plan to promote the registration system reform.