Research on the Capital System of Chinese Companies

Purpose – In 1994, the “Corporate Law of the People’s Republic of China” (hereinafter referred to as the “Company Law”) set up more regulatory specifications in the capital system, but strict control did not have the expected results. Design/Methodology/Approach – A large example analysis shows that the improvement of the capital system of Chinese companies must first be thoroughly updated in ideological concepts and theory, such that the relevant legal system will be improved. Findings – This article analyzes the core changes of the company’s capital system in the new “Company Law” after the development of the capital system of China. Under the capital system of Chinese companies, there are problems with the current form of the capital contributions of shareholders. We put forward suggestions on the improvement of the capital system of Chinese companies, especially concerning the improvement of the shareholder capital. Research Implications – Zhu Ciyun’s (2022) research shows that the newly implemented “Company Law” in 2024 has made innovative adjustments in the aspects of shareholder capital contribution, authenticity, as well as in the protection of creditors, reflecting the law’s balance of market vitality and risks of balanced market vitality. The indepth ideas for preventing and controlling the interests of creditors, and the promotion of economic development, makes it clear that the capital system of Chinese companies has entered a new stage of development.