Research On The Legal Status And Supervise Function Of Chinese Stock Exchange

Stock exchange plays a very important role in capital market, considered as a center. Membership system has always been the most common regulating mode since the very first stock exchange was founded in Amsterdam, Netherlands, in 1611. Because of the limitation of the dealing room and non-automated means for transaction, the mutual help between members has its rationality economically; therefore, it can be the optimum choice for organizing mode of traditional stock exchange. So, the membership system should be a creation in a certain circumstance. However, due to the globally financial market integrity and the significant developments in both electronic dealing means and communication technology, the market circumstances of the stock exchange being facing has changed swiftly and violently. More and more stock exchanges have already started to transformed their traditional membership regulating mode to a company mode,which is much more adaptable to a market competing circumstance.Different from stock exchange's development in other countries, too much control by the government appeared in our country. As a result, not only the Legal Status is not so clear, but also the government has effective control of capital market, which should have been the function of stock exchanges, moreover, it made negative effects on development of the stock exchange in our country. Now, with China's accession to the WTO, the capital market will be gradually open. The stock exchanges in our country will be meeting severe challenges all over the world. Consequently, positive measures should be taken to transform the membership mode to company mode。Aiming at the tendency for demutualization, reform of stock exchange, after analyzing the necessity of completing the Legal Status and regulating function of stock exchanges, the paper has disclosed a fault in the membership system in stock exchange, and based on the results from the research on both reform of stock exchange and the conflict of interest resolving mechanism in our country, the paper has clarified the stock exchange's Legal Status in our country and proposed a suggestion of taking specific measures for defining the regulating function for stock exchanges.