Abstract: The underlying reasons for the problems of initial public offering (IPO) in China are the weaker administrative supervision and lower awareness of legal risks. The authorized system is not the main reason. Therefore, the key point of the reform of IPO system in China is not to change the authorized system into the registered system, but to improve the relevant institutional arrangement so as to effectively restrain the opportunistic behavior of the issuers or the listed companies and their intermediaries, and protect the interests of investors. The following aspects should be included: strengthening the administrative supervision on the issuers and their intermediaries; perfecting the legal system of civil compensation to raise the legal risks against the issuers and their intermediaries; improving the supporting arrangement for IPO system, such as promoting the transparency of examination and ratification, improving the delisting system, etc..

Key words: way of initial public offering; administrative supervision; legal risk