2. Listed companies in China have a large proportion of China enterprises, and the share dividends among state-owned shares, legal person shares and common shares are different, which is not conducive to the development of the stock market. So "non-tradable shares" began slowly. The purpose of share reform is to let "state-owned shares" and legal person shares "enjoy" the market treatment of common shares, participate in market circulation, and realize the same rights and interests through full circulation.
3. Many company bosses also refer to their own company's equity incentives and the establishment of joint-stock companies as "share reform". This practice has become a general trend for enterprises to retain core employees and attract outstanding talents.