Research On The Supervision System Of IPO Stock

China’s capital market has developed for thirty years. In the latest IPO reform, thesecondary offering in IPO was introduced. The recent case of " Aosaikang "’ssecondary offering in IPO exposed that the new system not only failed to solve the oldproblem of “three high”, but also created new problems. From the perspective of theconstruction of the regulatory system, in order to maintain the stable development ofthe capital markets and protect market participants’ interests, the author think weshould explore a secondary offerings in IPO of China’s capital market regulatorygradually based on the special circumstance in our capital market and theextraterritorial regulations of capital markets experiences, along with the reform ofIPO registration system.In the first part, this paper defines the concept of secondary offerings in IPO.Compared with the incremental offering in IPO, the shares of secondary offerings inIPO are held by shareholders rather than the company. Compared with the secondarymarket, secondary offerings in IPO are different in the conditions of sale, informationdisclosure, subject to regulatory procedures. This part then classifies the secondaryoffering of IPO according to the standards of if there is an incremental process and ifthere is over-allotment option. Also this article claims the secondary offerings in IPOsystem itself has pros and cons. The second part analyzes and comments the initialestablishment of the secondary offerings in IPO regulatory system. Then discusses theconfliction between corporation law and the secondary offering, as well as the natureof stocks of secondary offering in IPO through several methods. Then analyzes thecauses of the problem in our country under certain market conditions by the exampleof " Aosaikang ". The third part investigates extraterritorial mature capital marketssecondary offering under IPO regulatory supervision. It investigates in U.S. and ChinaTaiwan. The U.S. market focuses on the information disclosure supervision, andemphasizes on counseling; Even if Taiwan emphasizes information disclosure,substantive conditions of supervision, guidance and ban combined are significant tosome extent. On the basis of the above analysis, the fourth part claims the principle ofsecondary offering regulatory in IPO should be based on strengthening informationdisclosure, keep balance of market forces, protect small investors; in terms ofinstitution building, we should introduce the system over-allotment option, strengthen pricing process open, restrict the offering number and purchase qualification; insupporting system design, we should list the restrictions about stocks, improve thesecurities investors protection and civil litigation system. The final analysis, weshould strive to improve the capital market regulatory system to ensure the capitalmarkets open, just and fair.