Study On The Improvement Of Share Repurchase In Chinese Listed Companies

Share repurchase is a common management method and financial management behavior in the mature capital market.It is also a necessary means for the company to merge and restructure,stabilize the stock price,and optimize the structure.Faced with the current market's needs,China's Company Law on the share repurchase seems to be somewhat lagging,resulting in the company's performance in the share repurchase is not active.The latest revision of the Company Law in 2018 has made special revisions and improvements to the share repurchase system,which has made great progress over the previous regulations.However,Article 142 of the Company Law only roughly relaxed the premise of the company's repurchase,the detailed operation methods of the relevant regulations and implementation rules have not been introduced.The reform of the share repurchase system is by no means a modification of the text of Article 142 of the Company Law.It is a series of system linkages or systematic reforms that require careful study by the theoretical,practical and legislative bodies.There are many defects and loopholes in the share repurchase system in the specific practice.It is necessary to clarify the effectiveness of illegal repurchase behavior,properly allow the company to accept the company's stock pledge,and clarify the responsibility for illegal repurchase.In addition,it is urgent to establish a matching treasury stock system,the surplus distribution system and other related supporting systems,in order to build a more complete and reasonable system,avoiding the risks of its existence,give full play to the role of the share repurchase system.