Personnel changes Taimukaiqi China’s financial industry, the four regulatory agencies to determine substitutions. According to media reports, Jiang Jianqing, the central bank is about to assume office, the Commission Guo about his new post, new post Banking Regulatory Commission Shang Fulin, 28, has been key Junbo CIRC office.

Personnel changes in the above, Shang Fulin, chairman of the Commission retired and assumed the post of Guo is undoubtedly the most concerned about China’s stock market investors. After all, this is the wish of investors but also investors have high hopes.

Shang Fulin, Chairman of China Securities Regulatory Commission, as the Fifth, since December 27, 2002 Since his inauguration, President of the China Securities Regulatory Commission sit in this position for nine years. Shang Fulin has done a lot during this period is conducive to China’s stock market is conducive to state-owned shareholders, benefit of the issuer or listed company’s work. For example, the share-trading reform; launch small board and GEM; launch of stock index futures; implement market-based pricing of new shares issued and so on.

But in recent years, investors Shang Fulin obvious discontent. Although the Shang Fulin, chairman of the Commission in office nine years, done a lot of useful work, but it is undeniable that nine years ago, Shang Fulin, protection of the interests of public investors is weak. For example, the split share reform, Shang Fulin, China’s stock market is a major contribution, but behind this, but it is the sacrifice of the interests of public investors, because at the time of the share reform, the non-tradable shares tradable shareholders be given the right price is very low, rather than the tradable shareholders would benefit so it is very rich, the public investors who pay into the share reform. It is particularly important in 2009, the shares of mandatory market-based pricing reforms, set entirely disregard the fact that China’s stock market immature, one-sided pursuit of market-oriented distribution, leading to market issue into a “pseudo-market” and become a “three-high “issue, as the issuer naked” money “tool. As the one-sided emphasis on the market regardless of market affordability issue, resulting in China’s stock market slump of recent years, the Chinese stock market is not only a departure from China’s economic fundamentals, even more than the financial crisis, the U.S. debt crisis, debt crisis in the United States, Europe stock market and the major European countries stock markets are weak. For this reason, investors will be satisfied with China’s stock market into Shang Fulin to the dissatisfaction of investors looking forward to retiring early Shang Fulin, CSRC chairman.

It is in this context, Shang Fulin, retired, and former CCB chairman Guo carrying the hopes of investors took over the post of Chairman of the SFC. Shang Fulin, in view of the past nine years has exposed the inadequate protection of investors’ rights issue, I sincerely hope that after Guo Chairman of the SFC in the office, the finance function to play the stock market while the stock market more attention to the investment function to be able to protect investors’ interests and focus on solving the following five aspects.

The first problem is to solve China’s share capital structure of listed companies deformity. In order to protect state-owned shareholders, the controlling shareholder protection, or the interests of major shareholders, has been the Chinese stock market is always to the shareholders at an affordable price gain in a large number of shares in listed companies, occupy a position of absolute control. As public shareholders, not only subscribe for shares at high prices, and the resulting shares of the total capital ratio is very low. This kind of irrational capital structure setting, not only led to the issuance of new shares at high prices, but also a listed company the maximum amount of cash dividends when the dividend flow to the controlling shareholder. And because the proportion of non-tradable shares too much, once the sale is limited lifting of the ban, has also increased pressure on the stock of cash, so the size of non-profits. Therefore, China’s stock market listed company’s share capital should first solve the problem of structural deformities. Such provisions, the total share capital of 10 million shares following the company, its first A-share outstanding shares of the total share capital of not less than 50%; 10 million shares of more than ten billion shares of these companies, first A share, compared to 40% to 30%; more than ten billion shares of the company, first A-share ratio is not less than 25%; one hundred billion shares of these companies, the starting ratio of A shares is not less than 15%.

The second problem is to improve the IPO system, the implementation of the real stock market development. The existing issued shares of the market investors bet is to use the completely out of the secondary market for the “gambling of the issued shares.” It is this “gambling of issued shares” led to the “three high” issue, and led to the surprise shares, PE corruption acts. Therefore, for this “gambling of issued shares” must be corrected. On the one hand is the implementation of the real market, the IPO price-earnings ratio and price-earnings ratio linked to the secondary market and shall not exceed the secondary market price-earnings ratio of 80%. On the other hand, according to the implementation of inquiry under the net purchase price, so that those who reported high price for their acts. Investment Fund because of reported high prices led to investment losses, fund management fees should be deducted, shall not prejudice the interests of the Christian Democrats. In addition, non-brokerage side of the body when the shareholders’ side of the bear Renbao Cheng, at the same time raised funds not included in the scope of the sponsor underwriting the cost of provision.
 
The third problem is the inhibition of listed companies “misappropriating” behavior, the refinancing of listed companies combined with cash dividends. Refinancing of listed companies shall not exceed the amount of financing since the last public listed companies to give investors three times the amount of cash dividends. And refinancing of listed company shares to the main allotment; limited to non-financial private placement financing; financing all the way to take ugg brand boots.

The fourth issue is to strengthen market supervision, increase the variety of efforts to combat illegal activities, in particular, to increase efforts to combat acts of fraud listed. Listed companies on fraud, all delisting process. Listed companies, fund-raising not only the amount of refund to investors, but investors should bear the loss. Sponsor institutions for participation in fraud and other intermediary organizations and parties concerned, not only the confiscation of their income, and be disqualified for practice.

The fifth issue is to increase efforts to protect the interests of investors, the introduction of collective litigation system, to effectively protect the interests of investors. The current regulatory protection of the interests of investors more just lip service, especially in the interests of justice to protect investors, and even set up artificial obstacles. On this issue, it is necessary to introduce advanced foreign markets of collective litigation system, the effective protection of the interests of investors, who pay the price for illegal.

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