Study On Cross-border Securities Regulation On The Proposed International Board System In China's Security Market

On April 29, 2009, the State Council issued "Opinion on Accelerating the Development of Modern Service Industry and Advanced Manufacturing Industry so as to Promote Shanghai to be the International Financial Center and International Shipping Center," which proposed to timely launch qualified enterprise aboard to issue RMB stocks in China. After that, Shanghai authorities announced to steadily build the International Board to attract overseas companies to IPO in China. The launch of International Board is on the verge upon the series of encouraging policies.The introduction of the International Board System will inevitably induce conflicts of securities laws and regulatory effects between China and other countries. Whether these problems can be effectively solved is the key issue of long-term stable operation of the International Board. As to the regulatory of the International Board, shall we adopt the filing system which is popular internationally or the audit system in China? When come to IPO in Shanghai, should enterprises list new shares or depository receipts? How to ensure domestic investors fully understand the true business information of enterprises abroad? How to punish those enterprises aboard that do not fulfill information disclosure obligations? How to coordinate conflicts of supervision effectiveness between China SFC and aboard regulatory bodies? How to coordinate conflict of laws based on improvement of the existing cross-border supervision and management system is the main purpose of this essay. .The essay tries to find solutions for China's International Board System by analyzing impacts of introduction of the International Board System, summarizing deficiencies of current cross-border securities regulation cooperation of China, and summarizing experiences bases on studying of Hong Kong's securities regulatory system. Meanwhile, the author puts forward his own proposals for cross-border securities regulation in China after the introduction of the International Board System, such as pre-IPO regulation, continuing supervision after IPO and improvement on combating against the cross-border illegal activities.This essay consists of five chapters.hapter I introduces the basic system of the International Board and potential conflicts of laws, such as information disclosure system, cross-border violations etc.Chapter II analyzes the basic concepts of securities regulation, such as the definition of securities regulation, system of securities regulation and other related concepts.Chapter III focuses on relationship of regulations on cross-border securities regulation cooperation, such as participating subject, ways of cooperation.Chapter IV introduces Hong Kong's legal framework for cross-border securities regulation, regulatory cooperation system and its experiences.Chapter V proposes legal advices for improvement of the cross-board cooperation system of China based on the previous analysis and experiences of other foreign regions, such as carrying out regional co-operation, changing ways of supervision and improving long-term stable regulatory cooperation mechanisms and so on.Conclusion part of this essay summarizes the context of this essay, and expressed the author's concern and desire to continue to absorb the views of community on cross-border securities regulation in China and provide proposals for improvement of cross-border supervision in China in accordance with the advancement of the International Board System.