China Stock Issuing System Reformation Route Research

China’s securities market from the beginning has been constantly dedicated to be explored and reformed.So far several issuance system have been executed,each new IPO system’s change will have a huge impact on the securities market.This article mainly focuses on the A stock market as the research object,which has a greatest influence on China’s securities market,and combs the historical evolution of China’s stock insurance system.China’s stock market from May 2015 to August 2016 had a roller coaster-style crash,and thousands of stocks limited down.High issue price,high price-earnings ratio,high raised funds,the "three high" phenomenon in the securities market led to the serious consequences,not only fundamentally contrary to the intention of market-oriented reformation and became to be a measure that large shareholders of many companies carried out high-priced cash and underwriters to seek improper benefits of the channel,inflated performance,abnormal transfer of shares,assault shares and other events repeated."The effectiveness of the market directly depends on the institutional framework","three high" phenomenon reflected our legal system of shortcomings.The Decision of the Central Committee of the Communist Party of China on Deepening the Reform of Several Major Issues in the Third Plenary Session of the Eighth Central Committee clearly pointed out that "We want to make a sound multilevel capital market system,a reformation of the stock issuance registration system,a promotion of equity financing,the development and standardization of the bond market,to raise the proportion of direct financing," Premier Minister Keqiang Li in 2015 also proposed in the State Council meeting that China’s stock issuance system must be reformed to be the Registration System.In this context,to comply with the central government’s determination to reform the securities market,the academic circles are studying the obstacles of China’s securities issuance system,how to learn from the valuable experience of capital markets in developed countries,how to combine with China’s own rule of law civilization and market ecology in order to explore the realization of China’s Securities Issuance Registration System reforming path.At present,most of the domestic researches focus on securities listing and trading,while the securities issuance supervision is relatively less concerned.Based on the securities issuance auditing system,this paper compares the relevant securities issuance supervision systems in major foreign countries.This paper will analyze the institutional framework and legal basis of the "approval system" which is being implemented in China and summarize its advantages and disadvantages,and introduce the overseas securities markets,especially the "Securities Issuance Registration" represented by the United States,from the perspective of comparative law.The theoretical basis of the Securities Issuance Registration is the theory of liberal economy,and the basis of its economic system is a highly developed self-discipline and market economy.Foreign capital markets’ developments and financial supervision experiences enriched the implementation of the registration system.The meaning of the registration system is understood in China,some understand the importance of information disclosure system under the registration system and also proposed to improve the legal system,regulatory means and civil liability.The core of the registration system is complete and efficient information disclosure,the audit authorities only exert an examination for the form,emphasizing ex post supervision,whose representatives are the United States and Japan.The success of the registration system implementation has a positive impact on China’s reformation of the registration system.This paper compares the information disclosure system,IPO measures and supervisory functions under the registration system of overseas developed securities market and finds out the drawbacks of the securities issuance approval system,and draws lessons from the advanced experience of its registration system and puts forward some suggestions on the reformation of China’s registration system.China’s registration system reformation should pay attention to the changes in the functions of the regulatory authorities,improve laws and regulations,take good use of disclosure system and safeguard the interests of investors.And then through the comparison of the two systems,I will sum up the elements of registration system in a country,which should contain a specific market environment,a judicial environment and institutional environment and other factors and come up with some advice about a series of stock issuance supervision reformation,including improving regulatory transparency and information disclosure,the concept of a comprehensive protection of the interests of investors,punishing heavier for dereliction of intermediary agencies and issuers false disclosures and so on.It is the real foothold of the comparative study in this paper,and suppose some advice about the theoretical innovation for the reform and perfecting of the IPO system in China.It is necessary to fully realize the current risk of the implementation of China’s stock issuance registration system and its system,the prerequisite for the whole reformation is not mature.To explore a "Chinese Style" stock issuance registration system needs the authorities to design and select a specific path.