The Research On The Nontradable Share Reform And The Protection Of The Median-small Shareholder's Interest

As an institutional arrangement at the beginning of the establishment of our country's capital market, the nontradable share plays an important role in the stable development of capital market in the specific historic environment. Along with the deepening of the economic system reform, the nontradable share's defect is more and more prominent in the further improvement of the listed companies'corporate governance, the lack of the median-small shareholders'interest protection, and the restriction of the capital market's continuous, stable and healthy development.On the basis of the formers'research and link to the latest data, this paper tries to exploit the cause, the schemes of the nontradable share reform, the reform effect and impact on the interest of the median-small shareholders.In the author's opinion, the core of the schemes of the Nontradable Share Reform is the compensation to the median-small shareholder by the pay of consideration, which is the key of the successes of the nontradable share reform. After the reform, the interest of the tradable shareholder and the nontradable shareholder has been common. The liquidity of the shares has become stronger. The control of the big shareholder has been weakened. The institutional base of the establishment of the incentive mechanism has been improved. The price earning ratio of the listed company has been lower with the increase of their evaluation in the market. The capital market's value for investing is higher. The mechanism of the protection of the median-small shareholder's interest has been improved, which cannot be made perfect by the Nontradable Share Reform. In order to solve this problem, we could pay more attention to the aspects: improve the way of which the median-small shareholder to do their rights; enhanced the information disclosure and decrease the extent of the information asymmetry; strengthen the government's supervision and make the relative law more perfect. Optimize the corporate governance structure and exert the strength of the independent director and the social consensus; encourage the institutional investors.