The Improvement Of The System Of Preferred Stock Issued In China

With economic globalization,The constant exchanges and cooperation between countries,China’s capital market has made remarkable progress through continuous development,but it is still not enough to compare with the developed countries and regions.Since the reform and opening up,China’s economic system needs corresponding transformation,so that the corresponding financial legal system can be started.Although the west has provided many proven legislative techniques,our country also needs to combine these technologies with the actual conditions of our country.Because of the endogenous financial trading habits have not formed the authority of the legal system,at the same time need to put our country’s financial market docking with the international financial market effectively,which makes the development of domestic financial legal system more difficult.A sound and stable capital market can provide security for the long-term development of the national economy.By understanding the current situation of preferred stock in China,this paper finds some problems which are not very suitable for China’s current situation.At the same time,we should know the development status and relevant laws of foreign preferred stock,and then discuss our own views on the current situation of our country.In this article,the author thinks that in 2014 the pilot measures for the administration of preferred shares of preferred stock in article 23 of the rules of the distribution proportion is too simple,coupled with some experiences and lessons of other countries some views.This paper also gives some opinions on the conversion of preferred shares into common stock and preferred stock repurchase in the withdrawal mechanism of preferred stock.At the same time,the protection of the voting rights of preferred shareholders is the guarantee of better issuance of preferred shares,so this paper also puts forward some ideas of their own.The essence of the principle of shareholder equality is equity.It requires the same rights and different rights of different shares.The existence of preferred stock does not conflict with the principle of shareholder equality.The issuance of preferred shares shall be subject to the terms of the issuance of preferred shares,which shall be in conformity with the preferred shares required by the company.In the practice circle of our company,certain industry habits have been formed.But if the law does not explicitly stipulate that the state department does not have a clear mandate,the practice community usually takes an extremely cautious approach to avoid the unintended consequences of excessive fund-raising.The issuing conditions of preferred shares,the size of issuance,the period of issuance,the purpose of issuance and the terms of issuance.All these legislation must meet the national conditions of our country,and provide legal protection for the development of preferred stock,so as to meet the financing needs of the company.Though the guidance of the pilot implementation of preferred shares of the state council on the issue of preferred stock and conditions of the relevant provisions,but for the need of economic development in China is not enough,for the issue of the legal system of preferred shares in China still needs to improve.At the same time,in 2014,the China securities supervision commission "preferred pilot measures for the administration of the relevant regulations,to the issue of preferred stock proportion,exit mechanism,the protection of preferred stock shareholders’ voting rights or some lack.Based on the actual situation of China and other countries’ experiences and lessons,the author puts forward some opinions on perfecting the preferred stock issuing system.