POLICY INTRODUCTION SPEECH 3
Moreover, the CSRC has promoted innovative funding mechanisms to improve M&A in
the country. Initially, the preferred share compensates fixed dividends and has senior positions
compared to ordinary stakeholders. In the events of bankruptcy, they have enjoyed seniority
privilege. The preferred shares do not possess voting rights and are not traders in the liberal or
open market. Furthermore, the preferred shares do not cause dilution effects to net benefits
credited to shareholders (Staff, 2013). Additionally, the CSRC has enhanced preferred shares
utilizations and investment funds for M&A in the country.
The regulations represent significant institutional planning or arrangement of securities
and future organizational mediation necessary for establishing favorable transaction policies
which promote efficiency and flexibility in the coordination of existing or available resources
within the country (Nussbaum, 2016).
On behalf of the China Securities Regulation Commission (CSRC), I would like to
appreciate different national departments for the valuable assistance, guidance, and support in the
execution of national policies and establishment of the domestic capital market (Staff, 2013).
Additionally, the departments continue to play significant roles in ensuring effective enforcement
and supervision of the national regulations. The CSRC has acknowledged the significance of
investors’ contribution to the advancement of China's market through liquidity benefits and
direct financial responsibilities in the domestic market. The contribution of investors may assist
in promoting the capital market of China (Staff, 2013). Finally, the promotion of innovative
funding mechanisms to improve M&A acts as the cornerstone of ensuring the active business
operations in the country. CSRC agencies should effectively implement the policies to provide
adequate protection for investors. Consequently, the CSRC has confidence in the powerful