The Regulation System And Development Of Seasoned Equity Offerings In China

With the successful implementation of split-share reforms in Chinese securities market, the basic financing functions of domestic capital market will be improved and reinforced by the elimination of market barriers. A high efficiency of the secondary equity offering (SEO) market is essential to the stock pricing and to maximize the capital utilization. And it also relies on a well-developed regulation system to guarantee its efficient operation. The frequent reforms and changes of Chinese securities regulatory policies during the past decade have been demonstrated to have limited effect on the development of SEOs market. The investors have regarded the SEO as a kind of cheating deal by some domestic listed companies only to get a great amount of financing capital from the market with a low investment return. It has become a critical and serious issue facing the regulators currently.The dissertation is based on the current situation and existing problems of Chinese domestic SEO market, and seeks to discuss the weakness and inefficiency of securities regulation system. Some experts have urged the domestic regulators to reduce administrative intervention and transfer to market-oriented regulation. We explain the history and long-term evolvement...