The Multi-interests Securities Regulation And Protection Of Investors

In order to achieve the utility maximization, the interest groups compete in security market, and conflict is inevitable. The failure of markets needs government to adjust their relationship. But the government also has its own benefit, so the system of regulation is complicated and composed by the multi-interest groups. Whenever whose rights are harmed, the government, the firms or the investors, the policies will be made to protect their benefits. Also the policies of government couldn't balance the benefits among interest groups. This situation has influenced the feature of security market, macro-economy and the stability of our country.This article bases on the complicate relationship of interest groups, and analyzes the defects of government regulation through interest group theory. Then discusses the existing and causes of Chinese policy-dependent stock market. The conclusion is that: the government's multi-objects and the defects of Chinese securities regulation present the conflict of interest groups and regulation failure. In our country, the policy gives more support on the transition economy, and ignores the interests of general investors. So the government should have definite object and construct the system of regulation composed by self-regulation and government regulation.