Abstract
The acquisition of Vanke Company by Baoneng group has aroused discussions between the theoretical circle and the real world on the dual class equity system. The development of multi-level ownership structure is a challenge and an opportunity for China's capital market. To research the dual class equity system in the angle of top-level design, we ought to make a change in giving the high-tech, high hit, and blue chip companies the choice of ownership structure in order to adapt the fierce competition environment. the dual class equity system reform level include the strict standards, regulate the entry criteria; strict rules of information disclosure mechanism, guarantee transparency of information and fair environment; defining the subject of management, improve the protection of small investors interest mechanism. We should make a useful exploration of the dual ownership system and continuously promote the reform of the shareholding structure in China.
Highlights
The dual ownership system is a mature company shareholding system in western countries, but in China double ownership system has not been applied and norms, existing dispersed ownership structure in some listed companies, the listed companies will face the risk of acquisition of other listed companies, whether this behavior is well intentioned or malicious acquisition
The same rights is based on the perspective of equal shares, each share represents the same rights and obligations, attaches great importance to the protection of the interests of small shareholders is not damaged, maintain the stability of the capital market, Vanke Company is the earliest real estate listed company in China, but the ownership structure of Vanke is not centralized
Jingdong listed on NASDAQ in the United States in 2014, issued a Class A and class B stock, Liu Qiangdong the founder of Jingdong has the class B shares of all the shares and B shares can be converted into class A shares, class B shares have 20 times the class A shares super voting rights at the Jingdong IOP, the proportion of founder Liu Qiang East Equity accounted for only 20.66% it accounted for 83.7% of the vote, Liu Qiangdong, control of the Jingdong through the implement the dual ownership structure
Summary
The dual ownership system is a mature company shareholding system in western countries, but in China double ownership system has not been applied and norms, existing dispersed ownership structure in some listed companies, the listed companies will face the risk of acquisition of other listed companies, whether this behavior is well intentioned or malicious acquisition. The same rights is based on the perspective of equal shares, each share represents the same rights and obligations, attaches great importance to the protection of the interests of small shareholders is not damaged, maintain the stability of the capital market, Vanke Company is the earliest real estate listed company in China, but the ownership structure of Vanke is not centralized.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
