Hong Kong Securities Trading System Is A Comparative Study

This article briefly introduce the securities trading system of the developed countries in the world, and focus on the characteristics of the securities trading system between Hong Kong and China. By comparing and analyzing their differences, Hong Kong, which well-known as an international finance center, acts an important role in the process of internationalization of the China's securities market. Hong Kong not only has a mature capital market, a well-established securities monitoring system, provision of comprehensive financial service,but also has the real time information, an excellent basic infrastructure, knowledgeable skills in financial management. These advantages cannot be found in the China's securities market. With the similar cultural background and social beliefs, the comparison between two securities systems becomes more meaningful.Base on the above assumption, this article analysed the problems arising from the securities trading system in China and the foundation causes of these problems. The unique trading system and the centralized bidding system together with a single nature securities trading systemresulted in the monopoly of the securities system;With the special historical background in China created a dispersion in shareholdings and burst trading system alienation of AB's; Improper composition for the investors in the market such as a few number of corporate investors tied up the development of China's securities market; The listed corporations are weak in the concept of going concern and the ineffective enforcement of the regulations lead to the securities trading system in China cannot fulfill the international standards.This article also discusses the necessity of developing a perfect and structured securities trading system, and put forward the ideas to establish the supervisory system and regulations which can meet the international standards, for example, reforming the centralized bidding system and proactively work on the massive trading system; developing the financial related products,introducing the selling sky trading mechanism and reducing the system risk in securities market; perfecting the system of transfer of shares and the regulations on acquisition; reforming the circulation of the shares and the trading system of A-share and B-share so as todevelop a internationalized securities market; strengthening the securities trading is realized the securities superviseing the internationalize.After joining WTO , the China securities market will finally in line with the securities market in whole world . By studying and reference to the experience of the mature securities market in Hong Kong, China can build the perfect multi-level securities trading system , and match with the international practice , the finance organization and the financial business in China becomes international standards and finally build up a China becoming the finance country greatly.