A Study On The Regulation Of China’s Capital Market

The study aims at how to use the regulation of capital market to protect national financial security. Based on the previous research on the national financial security and the regulation of capital market, the paper fully explores the effect of the regulation of capital market for the national financial security and the interrelationship between the regulation and the financial security. The article point it out that the national financial security may be dangerous in the long run unless the capital market regulation can focus it on the protect the benefits of investors. Then, the research exams Chinese investors protection given by the Chinese securities supervision and finds that the Chinese investors in security market are exposed the risk of false information, unfair deal and monopoly because lack of necessary protection from the market supervision institution in china. Thus, the authors believe that the Chinese securities supervision system has little help to keep china finance system safe. On the basis of this conclusion, the paper makes a suggestion that the Chinese government can improve the effect of its securities regulation system by creating its financial audit system to maintain its financial safety.In this field, the paper makes some innovations as follows:firstly, on the basis of the review of the previous researches on the national financial security and capital market regulation, the paper attempt to explore the supervision of securities market in the vision of national security, which few previous studies tried to. Furthermore, unlike this article,there are few researches divided the national financial security into two interacting parts:national financial development and financial stable and make some further studies. Secondly, the paper has explored the problem of our securities supervision system in the view of national financial security by compared with the developed countries’ securities regulation system. Thirdly, the article constructs a new theory structure to analyze how to improve the efficient and effect of capital market regulation to protect national financial security. Last but not least, the research point it out that Chinese government need supervise the regulator of capital market to guarantee its effect and efficient which affect deeply our national financial security. To sum up, the paper makes a little progress in above field. However, the study also has left large room to be improved. First of all, the research is build on the base of theories which need to be developed, so some results of the research might be not robust enough. Second, the empirical evidence for the effect and efficient of Chinese securities market supervision might be not enough too because the method taken by the study may be advance enough.There are six chapters in the paper: The first chapter is mainly about a introduction of the background, the meaning, the way, the innovation, the structure, of the article.The second chapter is a review of the previous researches about the regulation of capital market and national financial security. In this section, we define some concepts such as securities, capital market, capital market supervision and national financial safety, and summarize the study on security regulation, national financial security and the relationship of them to find the way for the research.The third chapter is to analyze and explore the theory of capital market supervision maintaining financial security. In the section, we have made a kind of theory to explore how to use securities supervision to protect financial security based on the present theories such as contract economics, institutions economics, mechanic design theory, regulation theory and so on. And then we discuss the legal basis, the goal, the standards and measures of capital market regulation maintaining national financial security. Lastly, we point out that only under supervision, the securities regulation that can protect the benefit of investors can be used to maintain financial security.The fourth chapter is to compare the different some developed countries’securities regulation systems and Chinese securities supervision, and then try to find Chinese securities regulation’defect and problem in keeping its financial safe.The fifth chapter is to make empirical analyze the effect and efficient of Chinese capital market supervision. In the section, we uses two kinds of method with two large samples to explore the effect and efficient of Chinese capital market regulation and find out that the efficient and effect of our securities supervision can’t be satisfied with investors and be far from the requirements of our national security.The sixth chapter is about the conclusion and suggestion. This section shows that the government need innovate our financial audit to supervise the regulation of capital market in order to maintain our national financial safety in present situation.