On The China's Security Market Regulation

The China securities market, which has only been established for over a decade, is quite unstandardized and immature. A lot of problem has arisen in it but we could find no ready-made solutions in the overseas securities markets. Consequently, it urgently needs our Chinese to make research on it and come up with the solutions. Regarding to this, this paper is divided into four chapters.The first chapter elaborates the general theory of the regulation of the securities market. First of all, the concept, definition and profile of the securities regulation as well as its objectives, means, principles and objects are introduced. The securities regulation is with the purpose of rectification and improvement of the intrinsic problem of the stock market. At the meantime, the government as well as its administrative department conduct, manage and guide the activities conducted by each main body of the market. Finally, they overcome the different flaws of the market ( the securities market failures), protect the legitimate rights and interests of the participators, guarantee its stability, perfection and high efficiency and improve the stability and advancement of the whole national economy. The effective supervision of the securities market must establish relevant principles , among them the principles of "openness, fairness and honesty" are the most basic principles, others includes: Sincere principle, manage the principle in accordance with the law, protect investor's interests principle, etc.. The targets supervised have industrial and commercial enterprises, fund, individual, financial intermediary of securities, stock exchange, etc.. Then we are analyzing three kinds of important control theories: Public interest theory (also called the social interest theory), capture theory and the new economic theory of regulation. The public interest theory, which is the basic economic principle of regulation, affirms the rationality and validity of government interference, regulation may be the means that alleviates the malfunctioned market caused by monopoly, externalities or the asymmetric information. It is proposed for protecting consumers. The capture theory explains that it is to help the person supervised to supervise. Factually, the persons who supervise, with the person supervised in this" cat chases mice", their levels are all improved. The new economic theory of regulation involves the mechanism question, through this mechanism, the social purpose to control can be achieved, consumers and producers both sides may all get the advantage from it. According to the public interests theory finally, we are illustrating the securities market monopoly ,controlling, externalities and asymmetric information causing the market malfunctioned, are theoretical foundations of forming securities supervision.Chapter two begins to tell the three kinds of securities regulatory systems existing in the world at present. They are represented by U.S.A. governmental regulation mode, represented by Britain self - regulation mode and represented by Germany, France middle type mode respectively, and states the pluses and minuses of three kinds of modes briefly at the same time. The current regulatory system of our countries consults U.S.A.'s mode. And then we are telling with the purpose to adapt to the growing securities market and improve the current situation of portfolio supervision, we should be close to the market supervision mode progressively while advancing gradually to set up the mode selection of the new system of market supervision of securities of our country. We should also give full play to the role of local government and securities market, implement the regulatory system combined by central authorities, locality's supervising and market self-regulation by the law and market methods under the central government management. Characteristic that such new mode there should be: a market regulatory system of the centralization of state power type but not to be centralized; the gover...