The Reform Of The Registration-based Stock-issuing System In China

In the development of China's securities market for more than 20 years,drawing lessons from Advanced systems and advanced concepts has been playing a very important role In the process.As a typical system of registration,the registration-based stock-issuing system of the US could give a good example to China in the process of Promoting.In this paper,by making a comparison between the registration-based stock-issuing system of the US and the approval-based stock-issuing system of China,we will find out drawbacks of the approval system in China,so as to make suggestion to the reform toward a registration-based stock-issuing system by drawing lessons from USA.Part one discusses the present situation of China's stock issuing system to reveal that the approval system has become the obstacles to the further development of the securities market in China,including the problem of highly administrative supervision,the problem of securities frauds and the "three high" problem.Through analysis of those drawbacks,we can see that the reason is the unreasonably possession of the issuing-decision right—the excessive power of the government has discouraged the role of market mechanism.The second part point out what should be paid attention to during the process of reference by making a comparison between the registration system of the US and the approval system of China in terms of the supervision mode,the information disclosure system and the supporting mechanism.The last part combines the former two parts,make suggestions to the building of the entire registration-based stock-issuing system of China.Specifically,the regulation model of the securities market has to be changed at the first step,and it is necessary to launch a three-stage reform.Secondly,in order to build a perfect information disclosure system which is the core of the registration reform,the government should strengthen the quality and management of information disclosure,ensure that investors become the owner of information.Thirdly,the rights and interests of investors must be taken care of by regulators.Last but not least,the supporting mechanism should include the delisted system,the equity refinancing system and so on.