Research On Double Equity System Of Listed Companies

The number of Internet companies and high-tech companies is growing worldwide.Due to the nature of their growth companies,the company's founders and original teams are particularly important to the company's operations and development.In the process of expanding the working capital of the enterprise,the control of the founders and the team will be diluted,so that they cannot maintain control over the decision-making and development direction of the company and lose control of the company.This is because the traditional 'one share and one power' system requires that the number of shares held matches the size of the decision-making power,which allows investors to control the Internet and high-tech companies.The value of the founders and the original team cannot be played.Conducive to maintaining and promoting corporate culture,it is easy to deviate from the original intention of the company.As a result,the dual equity system has received attention,and the dual equity system has made the same shares have different voting rights,which is quite different from the traditional shares.Many countries,such as the United States,Singapore,and the United Kingdom,allow or consider listed companies to use dual equity systems or other systems with different rights to provide convenience and broader development space for these Internet and high-tech growth companies.The dual equity system has been developed for over a hundred years and is widely recognized in the United States.In 2014,Alibaba sought to be listed in Hong Kong for a dual-equity system.After several turnovers,it failed to do so.Instead,it turned its attention to overseas and eventually went public in the United States.Since then,Baidu,Jingdong and other innovative technology companies have been listed in the United States in the same way as different stocks,which has brought thoughts to the reform of China's capital market equity system.In 2018,Hong Kong finally recognized the dual shareholding system.Xiaomi successfully went public in Hong Kong with a dual shareholding system.This paper first defines the concept of dual equity system,expounds relevant theories,and analyzes its development history and current situation in various countries.Take Alibaba's dual equity system as an example to analyze the financing and listing process and study its shareholding structure.Comparing the similarities and differences between Alibaba's dual equity system and the classic dual equity system,the advantages and disadvantages of Alibaba's dual equity system on business management are discussed.At the same time,this paper also evaluates Alibaba's dual equity system and raises the problems of its system.Finally,it summarizes the enlightenment brought by Alibaba's dual equity system to the diversification of the capital market equity system,and provides policy recommendations for improving the rights of the same shares.