Research On The Legal System Of Chinese OTC Market

A securities market system should be formed on the basis of the OTC market which is an important part of the multi-level capital market system. The companies appearing in the Stock Exchange market are mostly mature and have large scales. As the presence of the OTC market, lots of companies that out of the Stock Exchange can achieve the financing to develop them continually. The OTC market also nurtures quality resources of listed companies for the stock market. Thus, the importance of the OTC market is evident.In the recent years, the Chinese stock market has developed well, so does the stock transfer agent service. Regional OTC market, for example, Property Exchange and Managed Equity Center have achieved new starts and developments under the support of the national policies. The OTC market has a new prospect. Meanwhile, the legal system of OTC market is still unsound including some absent important related institutions. Chinese Securities Law says "According to the public offerings of stocks, corporate bonds and other securities should be listed on a Stock Exchange established by law or in the other securities exchanges approved by the State Council." Additionally, few institutions of OTC market are existing in the Securities Law, and some related institutions are formulated by the Securities Industry Association. Unsound legal system has blocked a better development of OTC market.To get more futures of OTC market, this article will analyze different legal systems of OTC market on the basis of a good will "Perfect the legal system of Chinese OTC market", to learn more experiences of other countries or region. This article will use comparative analysis to design some institutions of OTC market based on the reality of our country. Some benefits will come along, I hope. It will be great if my thoughts benefit the research on the OTC market.This article includes three parts:preface, main body and conclusion. The main body has four chapters. Chapter 1:The overview of OTC market. This chapter defines the content of OTC market and introduces the differences between some similar stock markets, inner levels of OTC market. Then, some characteristics are listed, convenient, open, high risk and so on. Lastly, some introduces of Chinese OTC market will be involved.Chapter 2:Analysis of the Chinese OTC market legal system. The author will point the target of this article in this chapter. Based on the legislation status, this chapter will illustrate the shorts of OTC market legal system of China and describe the significance of the legal system improvement.Chapter 3:Analysis of comparative law. On the basis of the introduces of American, England and Chinese Taiwan OTC market legal systems, this article will summarize a few experiences of OTC market legal system, to form some inspirations of our OTC market.Chapter 4:Designs of Chinese OTC market legal system. This part will envisage some institutions of Chinese OTC market, including the accesses of OTC market, introduction of Market Maker, transfers between different stock markets, regulatory system and enforcement of OTC market. The author hopes these institutions will be good for the development of Chinese OTC market.