Stock Terms: Share Reform &Nbsp; What Is Equity Analysis Reform?

　 Most of the current stock reform refers to " Split share structure Reform

The problem of split share structure has always existed in China's stock market, which is generally considered to be the number one problem puzzling the development of stock market.

In the past, due to historical reasons, 2/3 of the stock market in China could not be circulated. That is to say, the stock market also has circulating shares and non tradable shares. These two types of shares share different rights and shares, which is the issue of split share structure. Its disadvantages have seriously affected the development of the stock market for a long time.

The split share structure reform (stock reform policy) is to reconfirm the shares of the two types of shareholders under the changing market conditions. And from the current two types of equity split into the future. Comprehensive stock circulation The situation.

The purpose of stock reform is to improve the governance structure of listed companies, so as to eliminate the phenomenon that the system gives non tradable shareholders the right to monopolize the company and prevent the different rights and interests of the same stock from happening.

Once the non tradable shares enter the market circulation and the market circulation chips increase substantially, the market conditions of the minority tradable shares issued at the high premium will be destroyed. Under the original split share structure, the tradable shares are able to High premium issue It's because of the huge number. Non tradable shares No circulation. Now that the reform of non tradable shares has been carried out (divided from non tradable shares, all into the market circulation and the same rights and obligations after the reform), the non tradable shares should enter the market circulation. Of course, we should account for the shareholding cost of the two types of shareholders and reconfirm the ownership of the two kinds of shareholders. That is to say, the split share structure reform is to reconfirm the ownership of the two kinds of shareholders, and all the stocks will enter the market circulation. {page_break}

At present, the specific measures to reform the stock market are the company's own management reform proposals, which are voted by the small shareholders. Some creative practices are constantly being introduced, such as:

　 (1) a major shareholder's breach of contract clause.

Non tradable shareholders increase the promise of compensation for breach of contract, stipulate that if non tradable shareholders fail to reduce their shares according to their commitments, non tradable shareholders are willing to make full or partial compensation to the company for the sale of shares by default (similar to the Taiwan company's right of entry). This is a penal provision, which helps to eliminate the fear that the circulation shareholders will not implement the terms of the share reform commitments, and is conducive to stabilizing market expectations and enhancing investor confidence.

　 (2) raise the period of sale (similar to the period of lock up period at the beginning of mutual fund).

The big shareholder's initiative to extend the ban period shows that the majority shareholders are confident of the company's development prospects and give investors a good expectation. Some companies promise to extend the period from 12 months to 24 months to 36 months for large shareholders. The Jianghuai motor and Seiko technology have been banned for 60 months. The largest shareholder of Chengde vanadium titanium group, Chengde iron and Steel Group Co., Ltd., has promised to hold non tradable shares within 72 months.

(3) some stock reform companies also set the price limit terms.

Kaine, the largest shareholder of non tradable shares, will sell the stock through the stock exchange in less than 3 years at a price of not less than 11.74 yuan. This price is the highest price since the listing of Kaine shares.

     (4) Blue-chip company's consideration

Shanghai automobile and Minsheng Bank's two major Blue-chip company launched 10 shares for every 3.4 shares and 3 shares for each 10 shares. This pair of price levels surpassed the price range of the Changjiang Electric Power and Baoshan Iron and Steel Co., and further stabilized the investors' expectation of the circulation of blue chips.