The Risks Of China Security Market And Its Management

The security market is the most efficient and transparent asset pricing market, thereby it is likely to be affected by many risk factors, and thus fluctuates abnormally,which affects its functions. This essay analyses the risk factors of China security market in theory and practice, and draws a conclusion that the key of risk management of China security market lies in two ways: improving the governance structures of the security market participants to standardize their behaviors; strengthening the legislation of supervision and management regulations, so as to enlarge the cost of law-breaking. Finally, the essay analyses how to enhance the supervision and management of security market and makes a few proposals on the insufficiency of the relative regulations.