Study Of Capital Market Regulation

Capital-market plays an important role in country' s financial system. The core objective of governmental regulation is to cope with failures in Capital market. The author endeavored to approach the subject from anJ economic viewpoint and pointed out that the Capital-market Failures extended from the Theory of Market Failures and regulation of informationwas the key part of the public interest theory which provided a potential rationale for capital market. Then the article elaborated, on the basis of the public interest theory, upon major capital market in the world in such areas as securities' issuance and listing, security trading, security intermediaries, self-regulation organizations. Last but not least, the author comes up with a comprehensive analysis on the historical development and status of capital market regulation in China, and the counter-measures from such perspectives as evolution of regulatory system.