Comparison Of China And The U.S. Legal System Of Securities Regulation

Content:Securities regulation in the legal field is a new concept in modern times. It is a regulatory measure in response to the problems arising in the course of operation of stock market. It is a theoritical system of regulation as well. Since its birth,China's stock market experienced a ten-year-development and has been gradually on the right track. Since there is a huge interest in stock market, securities regulation may promote economic development. Meanwhile, under a strong supervision, it will strengthen China's securities regulatory system and improve development of China's securities market.China's securities market established is in the process of joint-stock reform. Since highly irregular initial operation, the stock market's self-management and risk control is very weak.In the early development of the regulatory system, there arised a lot of problems because of an unhealthy regulatory system, such as the existence of a large number of false market information, insider trading and other phenomena, as well as market manipulation, excessive speculation, and behavior. These problems will not only harm the interests of investors, but also handicap the function of observation to the national economy.Securities regulation involves many areas which may be crossed. Therefore, how to regulate a young securities market effectively becomes a major issue in current China. China should learn from the developed countries and adopt the securities regulatory system in the development of the process of establishing the stock market. The stock market of the United States is recognized as the most mature and comprehensive stock market in the world. The securities regulatory system in the USA is already quite mature after a long period of development. And its strict system of market regulation and its innovation reflect the basic law of securities regulation and general principles. Therefore, it is meaningful to study law system of securities regulation in the USA. The study will help strengthen the securities regulatory system and improve the development of stock market in China.The content of securities regulation involves a wide analysis on the regulatory system. It is not merely the object of legal discussion, but also includes economics, industrial organization theory, transaction theory, theory of financial innovation and research. This essay aims to accurately and scientifically describe the evolution of securities regulation and development of the legal system, by the contrast to the situation in U.S. at the same time, it aims to study, with the trend of globalization, how to strengthen China's securities market regulation and perfect its functions of securities markets in order to achieve a constant and rapid economic development of China's securities economy.