Law And Economic Analysis Of China's Securities Market Regulation

As the economy continues to develop, and the characteristics of China's economic transformation, the violations have been taking place in China's securities market. Strengthening supervision has been rising, and we see that the government has stepped up efforts to monitor the effects have been minimal,did not achieve the desired results. This fact lead us to reflect on this issue, the issue of how the government should monitor the stock market? How we can increase the efficiency of regulation? How can we achieve effective supervision? If a simple means of monitoring, supervision and find the reasons, and not to resolve substantive issues. Proceed from the system itself is important for regulating ideas.Currently, the studies focus on government supervision departments in the legal field. Most of the market is focusing on how the field of micro-regulation, such as the issuance of securities and insider trading, market manipulation and other operational areas. This paper attempts to macro-level analysis of government regulation as a system, the integrated use of comparative analysis. Empirical analysis from the perspective of Law and Economics Research conducted under the supervision of the government, the theoretical basis of its analysis. There is reasonable, defects and the development prospects and in light of economic globalization and China's practice form My government proposed regulatory reforms and development directionsOn the regulatory definition, the definition of securities market regulation in this paper summarized as follows : the so-called regulator of the securities market. is to protect the legitimate rights and interests of participants in the securities markets, and promote the sustained and healthy development of the securities industry. Safeguard the normal order of the securities market operations, securities regulatory bodies use legal, economic and necessary administrative means.The placement of the securities issued. intermediary institutions such as investment securities transactions, as well as the other market participants, as well as the conduct of supervision and management. Be under supervision and subject to government regulation and self-regulatory supervision division. Government regulation and industry self-regulatory system in the same advantages and disadvantages, the role played by a different but their fundamental objectives are identical, the two regulatory forms of mutual support, are indispensable. This is a necessary requirement for the course of development of the securities market and the results.The regulation is based on the theory of market economics. Due to external issues, it is not perfectly competitive, public goods, and the reasons for the existence of such information is not complete, This market failure thus shown the need for government intervention and interference. In other words, government intervention, or market failure is the reason for its existence and the fundamental basis for government regulation. Market constitutes an important component part of the market, so it is also inevitable to be "market failure", Many market participants have also suffered losses because of market failure, but it has its own characteristics. According to the general principles of special paper for its failures and regulatory reasons for a specific analysis.Apart from the theory of market supervision and support, the law is the practical basis for securities regulation. It occupies an extremely important position in the securities sector, in a modern market economy, monitoring of the heart is a concept of law. Legal System for the operation of the securities market, plays an important role. For securities in the securities laws binding the highest authority on the market have compulsory requirements. On the basis of the law is to regulate, but law is law from the perspective of the incompleteness of the government to regulate the provision of a reasonable proof. Legal theory is not complete by the London School of Economics and Columbia University Law School professor Xu Chenggang and Pistor professor in 2002 formally proposed. We recognize it provides a new perspective to government supervision.In regard to the regulation theory is reviewed. This paper reviews the traditional economics of government regulation in the early theory, and the government's monitoring of Law and Economics in the early study theory and summed up the monitoring of new developments in recent years. Early theories, the general view from the 20th century to the 1970s, 1930s, Pigou's theory on the origin of monitoring the mainstream of the public interest on welfare economics. 20th Century 1950s to the 1970s, government regulation continues to grow, but questioned the government's monitoring of the economy is also increasing. In this regard the most influential of public choice theory, the interest groups, the capture theory. In the field of Law and Economics, is the first major discussion on the supervision of law enforcement on the relations between public and private law enforcement. There has been litigation in the courts and in private circumstances. It is not necessary to public enforcement. Overall, the basic concepts of Law and Economics, who are opposed to early regulated by the government in recent years. Many economists continue to pay attention to and study the regulation. Economists such as GL and Shleifer through an incentive for law enforcement to study the issue led to the existence of regulatory reasons; By comparing two different enforcement strategies and the cost of that regulation and law enforcement system of choice causes. Xu Chenggang professor at the London School of Economics and Harvard Law School professor Pitsor the incomplete results of a series of studies in recent years , legal theory. They think the market failure, it is a regulator of the incomplete nature of the law itself has inherent problems caused by the failure of a deterrent response Incentives to get involved in the performance rather than just the fundamental reason for the regulator.On the basis of the above analysis and synthesis, the paper -- the cost-benefit analysis be conducted under the supervision of the securities market. The cost of government regulation in the supervisory process is a series of costs, including costs of this regulation, enforcement costs, laws and regulations restructuring costs, the government eased or lifted links regulatory costs. And the yield on the securities market regulatory measure, not simply the natural monopoly industry regulator proceeds be measured. However, investors can be confident that the efficiency of the allocation of capital, and other indicators to spread investment risk inspection and supervision results. Economics, law, legal systems and legal activities are in the final analysis, effective use of resources, the maximum for the purpose of increasing social wealth. The purpose of monitoring is to monitor the government, the right to achieve the optimal allocation of resources. The realization of the right resources in order to maximize the quality and optimization. This is usually said to maximize efficiency or effectiveness. On the basis of this analysis, this paper explores how to realize the effectiveness of government regulation, correctly handle the relationship between government and markets, including lowering the legal supply cost, and enhance the legal supply will raise the cost of the law, raise penalties and reduce enforcement costs, a reasonable allocation of disciplinary measures, the law increased revenue, improved incentives and other aspects.In the process of China's securities market regulation and development of new features, With the market opening up and the national stock exchanges, and promote the integration of the global securities market. States market for the development of China's securities market development trend draw. international market development trend largely reflects the long-term development of China's securities market. Globalization is an open market and the country's integration into the world economic system, the inevitable results, The regulation also sets new, higher demands. Such demands can be simply summarized as follows : the higher regulatory standards, pragmatic and effective international regulatory cooperation. regulators stronger as well. Contrast this, there are still many shortcomings of China's securities market, the main regulatory philosophy can be summed up as the defects on the regulation and supervision of its own shortcomings three flaws. In view of these aspects, this paper presents a sound basic idea is this : China's securities market regulation by the government to regulate the market, government regulatory framework, strengthening supervision of external cooperation. to strengthen international cooperation and strengthen supervision of credit and credit.However, improve regulatory work is a systematic project which calls for the coordination and reform in an orderly manner, can be achieved by effective monitoring to ensure the coordinated development of all aspects of the securities market. Really the entire national economy and to promote social harmony and stability.