The Research On The Divided Distribution Of Stock Shares Reform Of Xining Special Steel Co. Ltd.

For a long time, during the transformation process from the planned economy to the market economy, the management system and mechanism has been undergoing great changes. Under this macro background, it has formed a unique feature of the divided distribution of stock shares by the Chinese companies on the stock market. Although this method has played an important role at the time in stimulating the opening up and development of the stock capital market, with the passing of time and deepening pace of the reform, it has become a big obstacle for the companies on the stock market and capital market for the time being.The divided distribution of stock shares refers to the total amount of the stock shares is divided into two parts: one part is floating on the market and is exchanged at the secondary market; another part is not for circulation and can only be transferred by agreements. Therefore, series of problems, such as: unequal rights enjoyed by the same stock, different prices on the same stock and controlled by the inner circle, have aroused. In May 2005, a package of policies has been jointly formulated by the Stock Supervision Committee of China and the National Assets Committee under the State Council to push forward the reform of the divided distribution of stock shares of the companies on the stock market. The goal of this reform exists in enabling the circulation of the total stock shares of the companies on the stock market by way of paying the corresponding price to obtain the right of circulation on the stock market. After the realization of this goal, series of problems, such as: the unstable stock market, weak role of the market in...