What is share reform? Why share reform?

Share reform refers to the share-trading reform of listed companies. It is a process to eliminate the institutional differences of share transfer in A-share market through the interest balance negotiation mechanism between non-tradable shareholders and tradable shareholders.

Reform function

In the securities market before the share reform, although the status of tradable shareholders has been continuously improved, in the eyes of some controlling shareholders, it is still a monk's flesh, and it is rarely considered that tradable shareholders are also shareholders of the company. Only when I refinance will I think of taking care of the interests of circulating shareholders and communicating with them.

However, in the process of share reform, on the one hand, due to the unremitting efforts of the regulatory authorities, the status of circulating shareholders in consideration negotiations has been improved, and finally the consciousness that circulating shareholders are also shareholders of the company has been realized. On the other hand, the concept of circulation right was established in the process of share reform, that is to say, at the level of circulation, the rights of circulating shareholders are superior to those of non-circulating shareholders, so if non-circulating shareholders want to obtain circulation right, they must pay the consideration and obtain the consent of circulating shareholders. Therefore, only the overwhelming reports and comments on investor relations can make the circulating shareholders have the value of voting rights, which undoubtedly makes the circulating shareholders win an unprecedented victory in spirit.