| With the rapid development of the security markets in many countries, the traditionalfinancial structure has been transferring to a modern one, as the basis of financial system ischanging from bank system to the securities market, which caused more and more attention toits function and effect. As the security market has the characters of high-risk, high-liquidityand interaction between markets, financial regulation has put more emphasis on it. Havingbeen developed for more than20years, our security market have made great achievements,but also has a lot of questions. Since our capital market is in the special period of emergingand transition, as well as fumbling in practice, there are some questions, and even defects inthe fields of Public Offering and listing, fund and futures management, in the balancingbetween institutional innovation and risk managements, which needs further studying,enhancing and improving.As the typical respective of mature capital market, American has profound experience inthe security regulation experience. Though there are some differences in the legal system andthe maturity of capital market between US and China, from the perspective of securitysupervision, there are some similarity and comparability in the purpose of target and themethods of the regulation. Under this background, studing the difference and similaritybetween US and China security regulation system is extremely important to improve andenhance the reformation of our security regulation system. Based on the comparative study ofUS and China security regulation system, this paper selects the security market, fund marketand future market respectively, as the breakthrough point of the statement of securityregulation practice.The global financial crisis in2008revealed the fragility of the global financial system.Being the source of the crisis, US government has made careful self-examination, timelyadjustment and relative financial regulation polices including security regulation. Theseimprovements as well as the US financial crisis have caused high attention to the whole world.In the latter half of2008, President Bush announced the blueprint of financial regulatorysystem reformation, In June2009, the reformation proposal was officially put forward by theObama government. On July21st of2010, the financial regulatory reform bill went intoforce after being signed by President Obama. This Act is now deemed by the financialcircles, academic circles and regulatory authorities as the most influential and comprehensiveact in the near80years. Therefore, to in-depth study and research it,will be beneficial for theimprovement of our financial regulatory system，so this paper also put an emphasis on it. Similar to the US separate business management, the financial regulatory system ofChina basically consists of the people’s bank, China Banking Regulatory Commission(CBRC), China Securities Regulatory Commission (CSRC), and China Insurance RegulatoryCommission (CIRC). In this round of financial crisis, by going effectively about theirrespective terms of references, the regulatory institutions played an important role to maintainthe stability of the financial system.However, we should clearly note that the effectiveness of our financial regulators andthe stability of our financial market are closely related to the control of capital account,limited kinds of financial derivatives, the massive economic stimulus plan, the stronggovernmental support, and the unilateral rise in the price of real property assets. Think of ifwe have had a mature and open market, if we can resist from the crisis. Furthermore, as amarket in the period of emerging and transition, there exists the risk of Inadequate and overregulation, even regulatory failure, so it is necessary to keep on studying from the maturemarkets on the experience and lessons of how to deal with the financial crisis, so as toimprove the level of regulation.From the perspective of methodology, this paper mainly uses comparative study andnormative research. Comparative study is one of the basic methods of theoretical study, aswell as a normal method in the study of security regulatory theories. The compare objects ofthis paper, are two securities regulatory system which has big difference but relates closely.The purpose of comparison is to study the special and similar form under variousbackgrounds, but not to impose the two systems together. In fact, because of the difference ofculture, people from different countries and districts usually hold different views and usedifferent methods to solve even the same problem in public offering and listing regulation,information disclosure regulations. We should put emphasis on these differences, as well asthe similarities under different type of regulation system. Comparative study is the effectivemethod to learn the characters of financial regulation and to reveal the difference under thesame appearance.For the theoretical study, the paper involves the economic theory of market failure,analysis of risk conduction effect of the virtual economy to the real economy and transactioncost theory, the principal-agent theory, public choice theory, financial fragility theory andeffective capital market theory. From the view of government intervention, this paper putforwards the economic value of securities regulatory aim. Based on the comparative study ofUS and China securities regulatory system, the paper made the point that, the regulationobjectives should be clear and definite to protect the benefits of investors, to ensure themarket fair, efficient and transparent, to investigate and punish illegal acts, and to prevent andresolve of systemic risk. Our securities regulators can not posit themselves unclearly anyfurther. In the stock market supervision, the comparative study shows that the differencesbetween US and China stock markets are relatively obvious; firstly, the basis of legal systemis different. Secondly, the structures of listed companies is different, the Us listing companies’ownership is relatively decentralized, while in china is obviously centralized, the ratio of themain shareholders who owns more than30%stock of a company is much higher in Chinathan in US. Thirdly, the development extent of capital market is different, the US market ismore mature and highly market-based, while china capital market has been only developedfor2o years and has a big gap in the degree of market and perfecting of the system, since thatthe listed companies is a rare source in china. Fourthly, the structure and the aim of theinvestors are different in two countries. But on the other hand, there still some similarities inthe two markets, mainly in the following aspects: firstly, the function orientation of the capitalmarket is basically the same, which is to play the functions of resource allocation. Secondly,the main mode and the main goal of the securities supervision is consist. Thirdly, theglobalization and global capital flow have promoted the consistency and coordination of thecapital market system rules. Finally, the securities regulation has played the same role inmarket access of listing companies, only the market access threshold level and the regulatoryeffect of expectation values are not the same。The main gap between US and China securitiesregulation, is not only IPO approval or registration system, but also whether can adhere onmarket-oriented mechanism, can provide and maintain fair, justice, open market environment,based on the understanding of their own market characteristics. There are several factors thatcause the gap, firstly, since it is only a short period after the market set up, which developsvery fast, there is a period that we don’t even know what is the supervision, how to regulate,securities regulation is an exotic, which should keep learning in practice, grasping inpractice.Secondly, orientation of the stock market’s role is unclear, even the nationalgovernment made it unclear, it has been served for the restructuring of state-owned enterprises,the reform of state-owned enterprises, the state-owned bank reform, then changed itsorientation into protection to minor shareholders’ interest, it has been working to provide afair market environment, but at the same timetroubled by China’s current legal system, credit environment, which leads to cut its feetto fit the shoes. Thirdly, we have not studied profoundly. In the early times, we did theresearch by ourself.; later we began to learn from the west, but not precisely and thoroughly. Ithas even happened that we have copied from one of the rules as International practice to usein the homeland without understanding their whole regulation system, as result, it causeAnticipated, and has to be denied, modified, perfected, Fourthly, though it is encouraged thatregulation should be adapted to the China conditions, but it is not clear that what theconditions, so it is hard to find the right point. Fifthly, regulatory independence and authorityis not strong enough. The Administrative power of the ministries of China is strong, there are several ministries that has hands on the stock market supervision, including the people’sBank of China, the Ministry of finance, the national development and Reform Commission, aswell as State-owned Assets Supervision and Administration Commission, which is uniqueChinese characteristics. These ministries have great influential on stock market. On the otherside,CSRC is relatively young, and have limited effect on macro economics management.Finally, market develops faster than regulation, sometimes over-regulate, sometimes there isvacancy. Thesepolices and target are changed constantly. It is necessary to make clear theposition, the target and enhance the regulation tools.In the fund market supervision, the comparative study shows that the difference betweenUS and China fund markets is relatively obvious, the basis of legal system, the level of capitalmarket developments, and the market investment style caused by the inconsistency of fundinvestment habits are all different. habitat caused by the difference is different. But on theother hand, there still some similarities in the two markets, mainly in the following aspects:firstly, the consistency of the fund investment objective, secondly, the main mode and mainobjectives of the securities supervision. Thirdly, the way of fund investment and they use thelisting Corporation information disclosure as information channel. Fourthly, the fundcompany internal control, regulatory requirements are the same.The core problem of fundregulation is to pass away the weird theory of cultivation of fund market, to return to theoriginal target of supervision. The problem is regulatory commission is just like theIndustrial authorities, off side take the responsibility to improve the development of fund, butvacancy in where he should do. In the aspect of industry administration, it has been charge ofthe approval of fund manager qualification, SM qualification, shareholder change,modifyarticles and even the advertisement. of fund. The fund market is regulated strictly, whichshould be change totally. Though in2012, Securities investors fund law has modified aboutthis, but the regulators mind should change accordingly. On the other hand, the commissionsshould increasei the law enforcement, to vow to crack down on "rat trading " and help thePrivate equity fund by fund management companies. Finally, the internal control of fundcompanies should be strengthened. The rapid development of market results in that manyyoung researchers take the responsibility as the fund manager without enough experience andability. The problem of the under-quantified of fund manager, thatindividual investors becomethe main investors of the funds, the poor level of public fund managers, high salary withouttaking responsibility, should be paid full attention.In the future market supervision, there are relatively big difference between US and ourcountry, first, the institution in charge of regulation is different, Second, we have no rules atthe legal level of future regulate, but due to high consistence of commodity futures prices ofcross-border interlocking, which is even higher that the stock market and fund market, thecommodity future supervision system is relatively mature. However, we should recognize the importance and complexity of the future derivatives, promote the Futures supervision law toissue quickly, so as to develop the financial derivative products actively and safely.Due to the system problems, the financial crisis of US has been accumulated for somecertain time and the outbreak of it is sooner or later, but it is not Inevitable. Based on in-depthstudy of the causes of American financial crisis and the background of enhancement of thesecurities regulation system, the paper makes the suggestion of how to improve ours from themacro and micro prospects. Moreover, the paper suggests that, the risk of a financial crisisthat happens originally and singly in our country is low in our capital market, due to thestrictly requirement to be listed and thelisting approval system. Though we cannot prevent fraud definitely but the ratio is low,so that the probability of systemic risk caused by a exposure of fraud is very low.However, we should analyze the risks systematically and predictability. First, whether theindividual problem of an industrial can cause the group problem. For example, in2012, listedcompanies in the photovoltaic industry loss collectively, a company of the Small andmedium-sized plate went to liquidity risk and could not pay the interests of bond of a billion.If there were several such companies in the industrial, the confidence of investors woulddiminish in investing in some industrial or some kind of investment products(such asbond).Second, the impact on the stock index of major bad news by the big marketcapitalization company and heavyweights. For instance, in2012, the plasticizer problem ofKweichow Moutai, which is listed in Shanghai Stock Market, and the media false reportsabout Kangmei pharmaceutical, have caused the stock price go down in the same day and thefollowing several days, and also blow hardly to the whole industry, even though the problemshave been clarified lately. Think of that if the reports were true and concentrated in theindustry leading companies, whether it would produce a chain reaction.Third,if the short salesand stock index futures short mechanism may cause superposition.Margin financing and stock index futures is a new thing in China’s capital market, whichhas only existed for3years. There is a process for the investors and speculators to know it,and after that, if they become familiar about them, short sales and stock index futuresspeculation act together with the bad news released by the listed companies, may cause thestock index goes down deeply or not. Finally, since the bond market is not uniform, thebond rating agencies are not professional and the information disclosure platform are notunified, we may think of whether there will be a risk in some bond market of major industries.As mentioned above, the Photovoltaic listed company has3billions of bank debt, a billion oflisted company debt, and rating agency rated it AA when it issued bonds. Because of risk ofsuperposition,it would be extremely horrible if the company had applied for the issuance ofcorporate bonds at the national development and Reform Commission, the medium-termnotes at the people’s Bank at the same time,So the unified platform of bond market information disclosure, the listing Corporation governance and the bond rating regulationare very important, since these are all factors that may cause system risk. We should be readyto face the crisis before it really happens,since crisis is not one hundred percent predictions.As a conclusion, the paper argues that securities regulation will become more and morecomplex, more challenging, we have to keeping learning, absorbing, summarizing,correcting, and improving in practice.. |
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