Research On The Application Of China's Preferred Stock System

In the capital market,preferred stock has an irreplaceable advantage.For the company,better accommodation of funds can be achieved by issuing preferred stock publicly or privately;meanwhile,original shareholders' control over the company will not be diluted.For the purchasers,it is a safe way of investment in some degree because preferred stock has a relatively low risk.On the one hand,preferred stock has a fixed link of the dividend yield;on the other hand,its purchasers enjoy priority in profit allocation and liquidation over ordinary shareholders.Preferred stock,is favored by many foreign stock companies.Accordingly,relevant laws and regulations are established and improved in foreign judicial practices.China's preferred stock,however,is in the initial stage of development.Since the beginning of 2013,China has gradually introduced relevant legal documents on preferred stock and started pilot work.Although its laws and regulations have attained development to some extent,problems are arising in the process of its application,which further play a negative role in the development of preferred stock.This thesis makes a summary of the current development of China's preferred stock system,analyzes the problems within its application,and proposes some solutions in respond to these problems by learning from foreign law practices on preferred stock.It is expected that this thesis will offer a helpful theoretical guidance for the improvement and application of China's preferred stock system.