The shareholding system reform has many advantages. First of all, turning enterprises into joint-stock enterprises can increase the trust of enterprises and attract more investment and capital inflows. Secondly, joint-stock enterprises completely separate enterprises from society and market, thus standardizing enterprise behavior more effectively and promoting its professional development. Finally, joint-stock enterprises attract and inspire a wider range of investors and greatly broaden the financing channels of enterprises.
There are two main factors to promote China's shareholding system reform: first, the rapid economic development in China makes enterprises need more capital and deeper marketization and internationalization; Second, in China, the increasingly active policy support and attitude of enterprises have also forced more enterprises to choose the shareholding system reform. In a word, the shareholding system reform is an inevitable trend of contemporary China's economic development, and its economic and social effects are expected to be more significant in the future.