Study On Corporate Governance And Stock Market Supervision After Stock Right Spitting Reform

As we all known, the special ownership of stock right spitting in our country’s companies restricted the development of Chinese capital market and fundamental reformation of state assets. For recovering the proper price discovery function of capital market and restricting the listed corporation’s behavior, ensuring preservation and appreciation of state assets, and reforming the state assets management system, promoting capital market innovation and international, our capital market started the stock right spitting reform on April 29, 2005. But, how to build up a perfect and valid capital market needs a series of kit measures, there will be many challenges to companies and supervisors, including of the stock issue system, trade supervision system, and so on. So, after the stock spitting reform, how to standardize companies’ combination are worth to research deeply and resolve them. These are exactly problems which we will study.According to the research, the article draws some conclusions as following:(1) Stock right spitting in our country’s companies restricted the development of China Capital Markets and fundamental reformation of state assets, so it has to reform the old system.(2) After stock right spitting reform, the fundamental system obstacle which restrained the development of capital market will remove gradually,and the structure of corporate governance will be more standard. Meanwhile, price-found system will become true in stock market, which will bring about the upsurge of listed companies’ M&A, investors more diversified, financial products innovation more ripe, and the market investment behavior more and more standard. However, the above-mentioned is only a kind of possibility, the stock right spitting reform can’t solve all problems. The follow problems may also exist: in corporate governance, "inside control" may stress further, the battle between majority and minority shareholders will still exist and so on; in market supervision, the upsurge of merger and anti-merger, the credit lack of companies, various investors and financial products will make supervision more and more difficult.(3) Both enterprise and market are allocation ways of resources, but in order to pursue maximized interest, the big shareholders and managers may forge finance data. Therefore, the article puts forward to use a kind of competition mechanism to improve corporate governance.(4)The exterior supervision system is indispensable, and the supervisors should pay attention to immediacy, accuracy and legality of punishment.(5) Corporate governance structure is a complicated system, it needs to research systematically. Generally speaking, it needs to perfect related laws, system; besides the competition system, it needs to set up valid incentive and control mechanism, which can restrict the majority shareholders and managers’ dishonest.