Study On China’s Verification System For Securities Issuance

Verification system for securities issuance is a basic system in modern securities market. From a global perspective, verification systems for securities issuance are classified into two types, the registration system and the approval system, which is adopted in current China. With the deepening of reform and opening up and the rapid development of the securities market, many problems have occurred in China’ current approval system for securities issuance, thus making it a necessity to study and improve the stated system. It is a major project to explore a verification system for securities issuance adaptable to the real situation in China, which corresponds to the political and economic reality and the actual condition of the securities market and parallelly makes use of the advanced scientific theory and practical experience of the other countries.Based on the introduction and analysis of the body, content, standards of China’s verification systems for securities issuance and the overlap of the verification of securities issuance and listing, the writer has revealed the problems existing in this system and expressed some personal views on the countermeasures to improve this system, which is to transfer the verification system from approval to registration.The first part discusses the body of verification systems for securities issuance. In this part, the ownership of the rights and the characters of the bodies of verification system for securities issuance in main developed countries are firstly introduced and analyzed. Then, the writer points out that the only body of the verification system for securities issuance in China is China Securities Regulatory Commission (CSRS), and no self-regulatory organization participates in this system, which results in the excessive intervention in the securities market and the serious corruption in issuing verification.The second part is the content and standards of securities issuance verification. This paper points out the limitation to verify the only contents in the various materials and documents submitted by the issuers and the ambiguity of the standards of China’s current verification system, which lead to the insufficient information disclosure in the application of securities issuance and excessively high passing rate in the second verification meeting.The third part describes the difference between the securities issuance verification and listing verification. This part firstly introduces two different modes of verification system, the separation mode represented by America and the binding mode represented by Germany, and stresses the importance of the securities exchanges in both two modes. Secondly, the overlap and the irrationality of the verification system for securities issuance and listing is stated and analyzed. Finally, the writer has theoretically discussed the necessity to separate the securities issuance verification and securities listing verification in China.The fourth part is the writer’s corresponding recommendations and sketches to improve China’s current verification system for securities issuance on the above issues. This paper firstly argues that the objective of the reform of China’s verification for securities issuance is to realize the transition from approval system to registration system. After comparing the advantages and disadvantages of the stated two systems, this paper introduces the experience and referential importance of America’s verification system for securities issuance, the attitude of the interested parties and the feasibility of the reform, and concludes the reform orientation of China’s future verification system for securities issuance. Moreover, the writer maintains the necessity to all-directionally promote the development and improvement of China’s verification system for securities issuance, and proposes specific countermeasures from the perspectives of legislation, regulation and the market players.