The Study Of The Legal Problems On Margin Requirement Supervision

The official experimental work of margin requirement in China started in2010.The financial innovation in developed country was in direction of marketing requirement, but the financial innovation in China is promoted by the government, which can reduce the organizing cost and the implementation cost. This format may not reflect the true requirement of the market.Except the common problem shared by the securities market, the supervision of margin requirement of China faces the special problems unlike the other countries, such as paying more attention to development than supervision, the administrative control is too strong, the supervisor fails to follow the market-oriented philosophy. Firstly, The supervisors should change the supervising concept, weaken the administrative supervision, strengthen the legal supervision and market-oriented supervision. Secondly, the supervising power of the China Securities Regulatory Commission (CSRC) should be legal supervision rather than the extension of administrative power. The CSRC should be redefined as an independent body, which should be responsible to the NPC. Clarifying the responsibility of supervisors should be carried out together with establishing the working linkage of the supervisors. Market-oriented reform requires that the supervisor should lower the market access requirements while optimizing company management structure of listed corps, expanding the range of the object of margin requirement while strengthen supervising the information disclosure of the listed corps. As regard to the risk supervision, the decision-making power should be reclaimed to the People’s Bank of China. As regard to the legal system, security transfer system should be introduced in China, which can change the situation of conflict disorder in current system.