On The Legal Regulation And Practice Of Related Transactions In China 's Securities Market

In theory, the affiliated transaction is a neutral word, and is a complex economic phenomenon between the company and its affiliated person. Affiliated transactions are not simply market behaviors, also not belonging to insider transactions areas, and their existence is reasonable and inevitable. The one hand, legitimate affiliated transactions can significantly reduce operating costs, and increase the company’s economic efficiency; on the other hand, unfair affiliated transactions will greatly harm the interests of companies, investors and creditors, seriously dampen investors’ confidence on investments, and hinder the healthy and stable development of PRC’s securities market. In the process of our securities market’s development, there are mass of affiliated transactions to varying degrees both in the companies with the target of applying for listing and the listed companies in Exchange in a large number. How to regulate affiliated transactions under my existing legal system, to avoid damaging small investors, creditors and other stakeholders, and to maintenance fair and integrity in securities market, have became important issues in common study and concern by the securities market regulator, scholars of law and securities law practitioners and so on.This article is divided into three chapters, and Chapter I is definition of related party transactions and legal regulatory framework of our securities market overview. In this chapter the author will first define the concept of affiliated transaction and affiliated person under the framework of PRC’s current law, then introduce our securities market’s dynamic evolution of the system of legal regulation on affiliated transactions from the vertical aspect, and finally comb the relevant provisions under the current static system of legal regulation on affiliated transactions in securities market from the crosswise aspect.Chapter Ⅱ is the characteristics of legal regulation on affiliated transactions in PRC’s security market system and the basic principles thereof. There are mainly two aspects:first, the author will give a brief overview about the system characteristics of legal regulation on affiliated transactions on the securities market; second, the author try to conclude and analyze the basic principles of legal regulation on affiliated transactions in PRC’s current securities market, thereby study current situation and future improvement directions of legal regulation on affiliated transactions in PRC’s securities market.Chapter Ⅲ is reflections on the practice of legal regulation on affiliated transactions in PRC’s securities market, mainly from three aspects including securities issuance examination procedures, rules hierarchy of legal regulation on affiliated transactions, and exemption system of affiliated transaction, the Author will explore and analyze the imperfection of existing practice of legal regulation on affiliated transactions, and try to express his thought about perfecting the legal regulation on affiliated transactions in PRC’s securities market.