Analysis On Legal System Of Administrative Supervision On China Securities Market

China's securities market has made great progress since its establishment, and also it has made a significant contribution to China's economic construction. However, because of the historical reasons, there are still many problems and conflicts which have been the obstacles of the development of the securities market. This dissertation studies the basic theory of administrative supervision over securities market and then gives an in-depth analysis on the main problems in the supervision in China and finally concludes with a proposal to improve the legal system of administrative supervision of securities market in China.Chapter One mainly elucidates the basic theories of legal system of administrative supervision in securities market. Firstly, on the basis of the analysis of government intervention in securities market, the paper elicits the definition of the legal system of securities market supervision, that is, the government and its supervisory departments take responsibility of the supervision and management of various securities operation institutions and their activities through legal, economic, administrative, and other means in order to rectify and improve the securities market.Secondly, the paper reveals the features of the legal system of administrative supervision in China's securities market. The supervisory institution has both the functions of legislation and execution. The supervisory institution has the power to legislate the regulation on activities within its supervision scope and its legislation should have predictability and initiative, meanwhile, during the executive process, the supervisory institution have initiative, mandatory and continuity. The legislation and execution of securities administrative supervision remedy the passiveness and low efficiency of judicature to a certain extent, so the implement of securities law is improved.Finally, on the analysis of the concept and the features of administrative supervision, the paper proposes the aim of administrative supervision: to protect the legitimate interests of market participants, to safeguard the fairness and efficiency, to ensure market stability, integrity and efficiency, and to promote the stability and development of the national economy. Chapter Two focuses on the key principles of administrative supervision of the securities market and the main modes of supervision in the world system. The principles are carried out in the whole process of supervision and they embody the values and essences of the securities supervision, represent the aim and tenet of the securities, and contribute to achieve purposes of the supervision. The author holds that China's securities market supervision should follow these principles: openness, fairness, justice and honesty.During the supervision, the government should follow the principles of openness, fairness, impartiality and build a good credit image which ensures the smooth and efficiency of supervision. Moreover, the government should implement its supervision according to law and follow appropriate regulatory principles. Besides, government supervision of the markets is not always effective, according to the theory of"government failure", its supervision should be limited in the effective scope. Finally, we must adhere to the principle of protecting the interests and confidence of investors, which can realize the financing functions of securities market, and promote further development of the market.There are three types of securities supervision in the world, government-dominant, self-discipline and the intermediate one. For the leading role the government played, the government-dominant type can be better assured; self-discipline type, as based on the market, can analyze market dynamics accurately and in time, therefore it can adjust accordingly; the intermediate between the two, emphasizing both the supervision of the government and self-discipline is the current trend in the world. China's securities market is a centralized unitive supervision system: The government supervision holds a dominant role, meanwhile the centralized supervision and market self-discipline integrated with each other. This kind of mode used to play a positive effect, however, it brought out a series of problems inevitably.Chapter Three is an in-depth analysis of the problems and demands of administrative supervision of the securities market in China. The main problems are the deviations from supervision object and defects in supervision manners. On the one hand, in the protection of interests of investors, protection of equity and efficiency, the protection of market risk, government supervision still has some imperfectness; on the other hand, there are still many problems of supervision manners in the securities market, such as excessive supervision, over-intervention and other defects. These problems would lead to low efficiency and high-risk of market, damage the image of supervision institution, and go against the implementation of the law.In order to make clear the direction of the securities market administrative supervision and propose the way to improve it, the author, after analysis of securities supervision problems, points out the improvement of securities market administrative supervision, that is, the government supervision must be strictly limited within a proper scope, which is beyond the market failures and within the scale that government supervision can take effects and produce efficiency. The concrete demands are giving sanctions to illegal activities in securities market, protecting the legitimate interests of investors, guiding the social fund and capital into proper distributaries, taking strict precautions against high-risk in securities market, strengthening the management of the staffs in supervision institution.Chapter Four focus on how to improve the legal system of securities market supervision. The author holds that to improve China's securities market regulation, the first thing is to perfect the securities supervisory law. 1. Improving the concept of supervision, building a correct orientation is a prerequisite for the improvement of administrative supervision of China's securities market. 2. Make clear the position of supervision institution; strengthen the construction of legal system. 3. Pay attention to self-discipline, strengthen the construction of self-discipline institutions, and bring market participants'self-discipline into full play. 4. Establish and improve the legal responsibility of securities market system to ensure that illegal activities are published. 5. Establish the legal framework for the securities market to adapt WTO rules, go against the risk arising from the international market, and promote the healthy development in the international market.Meanwhile, in order to ensure the administrative institution implement according to law, we should complete the supervision mechanism. The author holds that we can establish China's securities supervision legal system from three aspects: supervision by the NPC, judicial supervision and the supervision from media. Through these three kinds of supervisions, the formation of regulation could be systemized, legalized, and the executive work could be open, transparent and effective, therefore these contributes to the sustainable and fast development of China's securities market.