Research On The Legal Status And Function Of Chinese Stock Exchange

The stock exchange is an organization or a location which provides the price-bidding market for the quotation of the share transaction. Since the first stock exchange of the world was founded in Netherlands, there is about 400 years for the development of the stock exchange. Generally, the style of stock exchange organization can be divided into two kinds: the "member organization" and the "company". The NYSE is the representation of the style of member organization and the LSE is the representation of company. Which kind of style has been chosen by one country was depended on the history and culture background of that country. In recent years, there is a demutualization trend among the market-oriented stock exchanges. So many Chinese scholars suggest that the Chinese stock exchange should be reformed from a mutualization organization to a demutualization company. But I don't agree such suggestion because though the Chinese stock exchange is defined as "member-style" organization in some regulations and the article of stock exchange, it is moor like a quasi-administration rather than a member-self-regulation organization under the background of the government-orientation path in the development course of Chinese stock exchange. Government-oriented path decides that Chinese stock exchange has no its independency in legal status and affects its function in the securities transaction market.So, in my opinion, in order to catch up with the requirement of the development of market-oriented securities market, the most important thing in the future reform of stock exchange is to re-orient the legal status of Chinese stock exchange. In a word, the holding of this article is the "member organization style" will be better for the development of Chinese securities market than the "company" style when we restructure the legal orientation of stock exchange. (over)...