Study Of The Issues On The Chinese Security Investor Protection System And The Perfection

The security investor protection system aims to protect the security investors' rights when disposing the risk of a certain security company, specially facing the revocation,closing,take-over even the bankrupt.The establishment of the system is meaningful in Chinese security market, where the majority are individual investors.It can help to reduce the disputes caused by the risk disposal of a certain security company and maintain the order of the society.The article aimed to find the possible ways to perfect the Chinese security investor protection system by analyzing the issues taking place in the course of the running of the system and combing the legislative practices both in and abroad.The body of this article is divided into five chapters:Chapter one:introducing the background of the Chinese security investor protection system and its characters.The security investor protection fund(established according to the system above) can make the risk of the security company disposed by the security market,changing the administration mode used before.The fund absorbs all the security company in the market to expand the protection range,while provides limited protection for the investors to help them make rational investment.Chapter two:introducing the fund manager,the Chinese security investor protection company(CSIPC).The departments of the government who supervise the CSIPC can not exercise their power appropriately.The composition of the board of directors is not reasonable.And the level of participation which the CSIPC takes during the risk disposal course of the security company can not help the claims compensated by the security company.Chapter three:analyzing the issues about the fund raising and appreciation.The standard about contributions paid by the security company is not appropriate.The majority of the income of the fund come from bank loans.The investing rule is not available.At same time,the fund can not appreciate very well,which will cause the fund financial crisis in the future.Chapter four:analyzing the issues about the fund payment system. The conditions about the appliance of the fund is not very rigorous.The choice about the compensation object just accords to the different kinds of the investors,which forgets the special institution investors that need help. And the compensation standard is not uniform.Chapter five:trying to find the reasonable resolutions to perfect the Chinese security investor protection system.First,the oversight department needs to exercise their power within their ranges.Taking the audit on the CSIPC can also enhance the supervision on the CSIPC.Let the public and the security company have a big say in the board of director, in order to balance the different interests.And endowing CSIPC the rights of supervising and participating in the course of the risk disposal of the security company,can improve the level of the payment from the security company.Second,it can enhance the security of the fund by distinguishing the different kinds of the property possessed by the CSIPC.And it can increase the money in fund by establishing the system of evaluating the security company' risk.formulating and enacting the specific investing rules and adopting other legal methods to increase the fund income.Third,to perfect the payment system,it needs to specify the exceptions of the payment to reduce the burden to the fund,while raising the protection level of the special institution investors.The study on the manager will be related about the security of the fund.The collection and appreciation can enrich the fund.The conditions,objection and the standard about the compensation is critical for the investors that whether their compensation can be paid.The article wanted to find the resolutions on the issues with the reference on the examples of other countries and regions.