Securities Analyst System

Compared to "the salt of securities market", the securities analyst exerts undoubted influence on the stock market, increasing the pricing efficiency and orderly operation of the market by collecting and analyzing information. In recent years, however, a succession of securities analyst scandals has undermined the credit and reputation of the profession. This has resulted in a variety of severe consequences, inflicting a great blow on investors' confidence and hurting the sound development of the securities market even the whole capital market. Besides, the ruin of professional image would likely escalate to a fatal curse on the occupation.Against this background, it is put on the agenda of world securities legislation to perfect the vocational system so as to give the securities analyst full play in channeling and circulating securities information without the information system being disturbed. This should be a even more urgent task for China's securities analyst vocation as well as the stock market, which has only emerged and developed in recent times.This paper's main body is composed of four chapters, aside from introduction and conclusion.The first chapter gives a general description of the securities analyst as a vocation, covering its market Pre-requisite, definition, description of duty and work in addition to the influence it exercises on the capital market.The second chapter investigates the reasons for the problems with the securities analyst occupation. Based on the analysis of both China's and U.S.'s securities analyst professions, the paper points out that point out that the vocation is particularly far from being satisfactory in China. Comparing the two countries' securities analysts, the author of this paper explores closely what accounts for the problems with China's securities analyst profession, reaching the result that interest conflicts should be responsible. On the other hand, it is the absence of a full structure in China's new occupation that results in our falling behind U.S.In the third chapter, the author presents a variety of systematic designs in U.S. laws to prevent interest conflicts, which is worth referring to. A focused discussion is conducted on America's SOX Bill, which is to copes with interest conflicts between securities analysts, the Chinese Wall of the information segregation system as well as securities analyst exposure system.The forth chapter proposes suggestions about China's securities analyst system: a) to establish an effective interest conflict prevention system. In the light of SOX Bill, the author specifies the ways of creating fire wall system and information exposure system; b)to reinforce second-level securities analyst counseling, deregulate its services and optimize the professional structure so as to open up more channels for its income; c) to create a strict system of registered securities analyst as well as a long-term evaluation system and d) to impose on securities analyst civil responsibility for the third party seeing that China's law does not state precisely or fully regarding this, which fails to protect investors with efficiency.