Abstract: The system of new stock issue in China is now in a critical period of transformation from the type of check and approval or sponsor to one of registration. There exist quite a lot of weaknesses like power-for-money deal and intervention in the market by the administrative power. This leads to the lasting depression of the stock market and keeps it from growth. Taking the current national situation into considerationand from the experience of the capital market of the developed countries for reference, the author of this paper believes that the reform of the registration system represents the general trend. For the market is yet to become mature, the complete implementation of the registration system will cause chaos of the market. Therefore, the combination between the check and approval system and the registration one should be employed during this transformation period. Further, the administrative power should gradually retreat from the new stock issue. In this way, we can deepen the market-oriented reform dependably and steadily, and perfect the matched laws and regulations. And all these will contribute to the de-administration and cultivation of a mature market and hence to implement the registration system.