A Study On The Legal System Of Regional Equity Trading Market With The Characteristics Of Ethnic Minority Areas

Accelerating the development of the multi-level capital market is an important strategy adopted by the Party Central Committee and the State Council for the capital market and national economy development in the new era. Developing a multi-level OTC market with unified regulation and management, especially a regional equity market, is an objective need not only for clearing up all types of trading venues and standarizing market, but also for developing capital market service and solving financing problems of small and micro businesses. Furthermore, it is also an objective need for capital market serving the real economy and supporting regional economic development, especially for the ethinic regions. China is a united, multi-ethinic nation with relatively lower economic level and weaker business competitiveness in ethinic minority regions, and the competence of tapping capital market to boost economic development in these regions is also inadequate. Regional equity market, as the most fundamental section in multi-level OTC market system, by provide direct financing channel to those enterprises ineligible to going public, is very conducive to enhancing local business competitiveness and economic vitality, expanding the functionality and service range of capital market for the development of real economy. In this context, it is very important to strenthen the construction of legal and regulational system of regional equity market, encourage local government, supervising department and specialized agents to play their due roles, so that ethnic regions can receive sufficient support to develop local economy by tapping capital markt. This is of great significance to promote the regional economic growth, especially in ethnic regions, and sufaguard the stability and unity of our nation.In recent years, with the end of clearing up of diversified trading venues, the regional equity market has witnessed a rapid development period. However, compared with the vigorous growth of the new three-panel market, the regional equity market in China is still undergoing the exploring stage. The development of some regional equity market has experienced ups and downs and is unable to fulfill its function and be integrated into the capital market system. It is caused by some regulatory departments’incapability of supporting and attaching importance to the regional equity market as well as inadequate market adaptability of business model. However, more importantly, since the starting of capital market in China was late, there is room for improvement of the legal system and environment of the capital market. Apart from that, the legal system regulating OTC markets, especially regional equity market, is not sound enough. The insufficiency of legislation and related regulation on standardizing regional equity markets as well as the unclear positioning of markets, law system, risks prevention and regulation have a huge impact on the establishment and improvement of multi-level capital market system in China.The research mainly adopts comparative analysis, institutional analysis, case analysis and the combination of theories and practices. The research is divided into five chapters:Chapter I is the introduction of the research, including research background, scope, framework and the preparatory work the researcher has done for completing this dissertation.Chapter II includes a comparative study on the status quo of China’s regional equity trading market, and an exposition on the role and fuction of regional equity trading market. It also introduces the status quo in which securities companies participate in the regional equity markets and analyzes the relavent regulations and problems of regional equity markets from the perspective of secrities companies. In particular, it introduces the current status and operation mode of Beibuwan equity market in Guangxi Zhuang Autonomous and RegionFinancing of equity transaction center of Xinjiang, presents major problems that restrict the development of this market and, based on the analysis above, this chapter presents tentative suggestions on the solution of certaion pervasive and typical problems in China’s regional equity market.Chapter III discusses the core factors that affect the development of regional equity market, i.e., the construction of legal and regulaitonal mechanism. By introducing the current legal and regulaitonal mechanism in regional equity market and by comparing basic regulation system of certain regional equity market, the author points out some weaknesses in the current legal and regulaitonal mechanism in regional equity market.Chapter IV introduces and analyzes the development experience of private placement martet in the United States. In this chapter, the develpment process and legal and regulational construction of private placement market of US are introduced, analyzed and summarized. The author performs analysis on certain classical cases and decribes in detail the regulation of issue, information release and eligible investors of the private placement martet in the United States, with the aim of improving the legal and regulation system of China’s regional equity trading market.Chapter V presents the summary of the research. The author in this chapter discusses the develpment trend of China’s regional equity market proposes some suggestions on the the improvment of legal and regulaitonal mechanism of the market. First, overarching designing of legal mechanism should be strenthened so that the legal role of regional equity market can be further clarified and the standardized and coordinated development of the market can be guarenteed. Second, a unified management system should be built, which means that the underlying regulations in different regions must be unified both in form and in content. In doing so, the illegal profiting of the supervising department can be effectively evaded. Third, local goverment and supervising department should play their due role and construct a supervision mechanism suited to the development of regional equity market. Meanwhile, the support to enterprises in ethnic regions should be strenthened and diversified channels should be provided for ethnic regions to tap capital market to development local economy. Fourth, innovation in both product and service should be encouraged and expert agents should play their due role to boost the vitality of the market.This dissertation presents an in-depth research and includes certain aspects of innovation, which may serve as policy reference for the mechanism construction of developing multi-level capital market in China.