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Studies On The Supervision Organization Structure Of The Securities Market

Posted on:2005-03-08Degree:DoctorType:Dissertation
Country:ChinaCandidate:W D YangFull Text:PDF
GTID:1116360152468444Subject:Western economics
Abstract/Summary:PDF Full Text Request
This paper intends, through a comparative study of different securities markets, to investigate the possible development line of supervision and control organization structures, so as to find out the right measures to take to perfect China's securities market and the right direction to follow.Classical Economics considers that market mechanism can solve the problem of resource-allocation and hence improve the welfare of the whole society. However, more means other than market mechanism are called on because of the existence of monopolization and externality and public goods, which can all lead to market malfunction. Supervision is just one of the means to account for market malfunction. Supervision is more badly needed in securities market in order to safeguard market order and to protect the benefits of the investors, because information is dense and price fluctuation is severe in securities market and benefits of market parties are highly related to securities market, especially when prices are decided by the expectation of different parties. Considering different developing levels of securities markets in different countries as well as different institutions and market customs, there are many forms of securities supervision mechanism and supervision organizations with different distinguishing features. As a developing country, the securities market of China is still a new burgeoning one. So supervision mechanism and structure of supervision organizations not only need link up the situation of China, but also need use the experiences of the mature securities markets of developed countries for reference. Only in this way could the supervision mechanism and forms of supervision organizations be set up according to actual situations in the securities market in China and facilitate the development of the securities market in China.The thesis focuses on the following points. Firstly, the thesis makes it clear that different countries, due to their economic and cultural traditions and present environments, have developed different securities market supervision mechanisms and organizations. Secondly, the author puts forward the evaluation principle of supervision efficiency of securities markets: whether the supervision is efficient can be judged by two indicators: a) the efficiency of the securities market, and b) the regularity and smooth development of the securities market. Then, the author points out that the supervision mechanism and organization are always in change and adjustment. Finally, the paper tries to propose to the supervisors an effective supervising policy choice method which will help the supervisors to promote the market-direction reforms in the securities market according to the realities of both the domestic and the world economies.Taking advantage of relevant researches in this field, the author has obtained the following achievements in this paper. First, while discussing the reasons of securities market failures, the author finds that it is the specific features of the securities market products, information and market structure that call for strict supervision, which has laid a theoretical foundation for raising the supervision efficiency. Second, when summarizing the decisive factors in the choice of supervision organization structures, the author discovers that traditional environment factors and basic market factors join forces in affecting the final formation of the supervision organization structure; however, in the long run, the basic market factors will decide the organization structure. Thus, the supervision organization structure of different securities markets will tend to go identical, i.e., the independent supervision organization will function as an outer-supervisor. Third, when considering the vertical structure of the supervision organization, the author suggests that there exist a division line between outer-supervision and self-discipline of the market actors. Local governments should not involve themselves in the supervision of the securities market; otherwi...
Keywords/Search Tags:securities market, supervision and control, organization structure
PDF Full Text Request
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