The Transition Of China's Securities Market Of Public Regulation Research

At early 21st century, one important question is put forward to us. That is where china securities market will develop? To answer the question, we must analyses in great detail a main and leading variation called regulation, which decides the development of china securities market. Though the relationship between government and market has always been the core of economics, though the systematic research achievement is obtained by rare regulation, a kind of government strength, getting involved into the internal securities market, yet theoretical research on china transitional securities market is almost empty and vacant. After retrospect several comparative and mature regulation theories, the article applies modem regulation theory to reason theory framework based on asymmetric information of securities market. In addition, the article further analyses and compares best equilibrium under complete information, equilibrium disappears under adverse selection, and efficiency improvement under regulation institution intervention. As a result, I reveal common mechanism due to control intervention into standard securities market. However, Chinese economic transformation makes it necessary to enlarge the framework of regulation analysis based on normative securities market. After looking back at the development of china securities market from the angle of regulation, I apply the same analysis tools to discuss the securities contract arrangement caused in the background of in distinct property rights. In addition, I test the contract arrangement on principle of mechanical design. The function of risk disappear mechanism during the contract negotiation causes the formation of contract, however, there is still a real hazard of risk accumulation enlargement after the superficial phenomenon. So it抯 very essential to force the change form government intervention to regulation intervention. Facing the fact that the inefficient china securities market, the article analyzes carefully the reason for low contract efficiency from the following aspects such as property rights, insufficient information regulation and the structure of regulation mechanism. What抯 more, the article points out reregulation is a possible way to normalization development of china security market after analyzing the disadvantages of strengthening regulation and deregulation. At length, the thesis paper will discuss the design of reregulation mechanism from the principles of incentive and constraint regulation institution and punishment mechanism. Due to securities market抯 globalization, market close hypothesis of analysis framework must be relaxed and open economic condition must be introduced. Based on the above theories and facts, in the end, I will discuss briefly how to choose china securities market抯 regulation according to the competition and corporation which are two core layers of global securities market.