Influence And Countermeasure Study On The Reform Of Non-tradable Shares For Financing Tactics Of Listed Company

On April 19, 2005, China Securities Regulatory Commission released《Circular on Issues relating to the Pilot Reform of Listed Companies Split Share Structure》, and the reform of non-tradable shares was formally initiated. The capital market is saying farewell to the split share structure age and heading for the all-floating age. All related policies,systems,strategies will change, including the financing tactics of listed companies.In this paper, the author compares the financing tactics of listed companies in the split share structure age and the all-floating age, and come to the following conclusions: In the split share structure age, listed companies could do equity financing for all IRR projects at the price higher than book value of net asset. Non-floating shareholders benefited from this financing tactics and would vote it to make it executed. But in the all-floating age, only those equity financing decisions for the projects with IRR higher than the market rate is favorable to all shareholders and will get approval to execute.So in the all-floating age, the listed companies have to change their old financing tactics, and improve their financing ability by taking some effective countermeasures.Meanwhile, the supervisor-China Securities Regulatory Commission should gradually cancel the restrictions on listed companies financing, and let listed companies financing according to the market situation.There are six chapters in this paper:1. The first chapter is introduction of the background,meaning,frame,innovation and deficiencies of this paper.