免费日韩片_欧美成人精品一区二区男人小说_国产乱码一区二区三区四区_国产精品国产三级国产aⅴ入口_成人看的污污超级黄网站免费_欧美一级在线免费观看_成人午夜免费无码福利片_国产乱人伦偷精品视频色欲_aaa少妇高潮大片免费看_国产精品1234_亚洲精品国产suv一区88_中文字字幕在线中文无码_精品亚洲区_午夜九九九_国产av国片精品jk制服丝袜_色综合亚洲_亚洲成av人片无码bt种子下载_欧美色就色_精品少妇的一区二区三区四区_男人用嘴添女人下身免费视频

Stock market reforms suggest success
(China Daily)
Updated: 2005-08-23 06:07

After a four-year bear market, the heavy losses most investors had suffered and the even more serious loss of the stock market's fundamental role in bettering capital allocation finally persuaded the securities authorities early this year to put an end to the split share structure.

During the two rounds of experimental reforms, lump sum compensation in cash, shares or other forms was offered by majority shareholders to public investors to allow their non-tradable shares to float.

Though some argued there was a lack of legal basis for such compensation at the expense of State shares, the reforms have gained widespread support from the market for at least reflecting reality.

Historically, in the interests of majority shareholders, the split share structure largely boosted market prices at the cost of public investors. Even if not legally, majority shareholders morally owe public investors compensation as they have sought to float cheap non-tradable shares.

The successful conclusion of pilot reforms may be a guide for future reform. Even so, the all-round implementation of a share-merger reform programme will pose many new problems.

Unlike the 46 pilot companies, some listed firms' performance is too poor to support compensation, and some blue chips may only be willing to pay a little.

The favourable market conditions the securities authorities are so desperate to create will not last long as reformed companies begin to raise funds, putting pressure on the recent rally of stock indices.

The performance and corporate governance of listed companies are the decisive factors determining their own long-term value as well as that of domestic stock markets.

So far the pilot reforms have only laid down the foundation for improved performance and supervision of listed companies.

The reform will have to take much more aggressive action in terms of market regulation, enterprise reform and legal enforcement to make domestic-listed companies valuable and accountable to public investors.