| Both international experience and China's practice show that securities market is a risky one which is like a two-edged sword :it can stimulate economic development actively , but sometimes it can also damage the economic order badly. As far as the historical path of the development is concerned , risks of the securities market exist from the very beginning of the market itself. Securities markets have been developing very fast during the last three hundred years from the end of the seventeenth century when the European securities markets first came into being .In this process ,both issuing and trading volumes of the securities markets expanded at a very high speed ,firstly the bond market ,and then the stock market .However ,stock disasters broke from now and then with the expansion of the stock trading volumes ,such as the market crisis from the year 1929 to the year 1933 which is the first one ever happened worldwide. Up recently, people are still reminded of such unforgettable moments as the year 1997 Asian financial crisis. If we look beyond the securities and focus on the global financial area in the 1990s,our sight is easily caught by Mexican financial crisis in the year 1994,the bankrupt of the famous British Investment Bank the Baring ,and the financial bankrupt of US Orange County , etc. As far as the domestic situation is concerned, China's securities market only has a short history ,but is not free of risk .Participants of the market have already taught by some lessons ,for example ,the "3·27"national bond incident in Shanghai which led to the bankrupt of Wanguo Securities Co. ,the sudden heavy loss of stock prices at the second market in 1996. Since the 1970s,a series of great changes have taken place in the world economy, which has huge impact on the development of securities .Three aspects of this process have brought to the securities markets not only un-precedent chances and power, but also heavy risks: information revolution, market integration and the invention of many securities derivatives. All market participants, such as investors, regulative authorities, public companies and securities companies, are confronted with severe challenges under such situation .For example, with the wide application of communications methods ,computer technologies and financial engineering, any risk taking place at any part of the markets will spread to every corner of the whole markets inseconds, the prevention and control of which requires all participants of strong and instant reacting capabilities. An obvious example is the issue of risk control in the international financial market. It is known that the international financial market lacks effective regulative mechanisms, and transnational hot money of large scale brings huge shocks to the financial and economic systems in any country and area, especially those with capital accounts opened. As demonstrated above, risks coexist with the securities markets everywhere, and their potential hazards are increasing with social and economic development. Therefore, risk-bearing decision and risk management is not only a long-time issue, but also a very important and urgent one. The major conclusions are as following: risk-bearing decision and risk management are very important ,especially for such developing securities markets as that in China which is saturated with transitional institution arrangement. Beginning from the analysis of securities market's risks, I compares the similarities and differences at home and abroad, then explores the mechanisms how these risks form, and at last analyzes risk-bearing decision and risk management of various participants in the securities market respectively. The focus here is on the theoretic and normative analysis of many institutional arrangements which are related with risk-bearing decision and risk management. Both their reasonability and potential improving directions are pointed out. It is believed that although there are many problems and inefficiencies in China's securities market...
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