Study Of Legal Supervision Over Opening To The Outside World Of Chinese Securities Market

Chinese Securities Market has been endeavouring to facilitate the process ofopening to the outside world since China officially joins the World TradeOrganization (WTO). As a burgeoning securies market, faced with unhealthy ownmonitoring systems and nonstandard operation, Chinese Securities Market starts togradually open the security market from B-share market. In an era of economicglobalization, those internal malpractices and defects attached to the securies market’system suffer from a natural hazard. Therefore, how to employ rational regulatorymeasures to supervise efficiently and prevent market risks and promote the smoothand steady and fast development of Chinese economy is an important issue, which iswell worth individuals`concern and reflecting, whoever pays close attention to theadvance of Chinese Securities Market`s opening to the outside world.Based on fundamental principles of Jurisprudence, Securities law, economic andfinancial law and closely around the theme of the legal supervision of ChineseSecurities Market`s opening to the outside world, this paper conducts research onsome issues on the legal supervision of the securies market`s opening to the outsideworld. Through an analysis on the current situation of the securies market`s openingto the outside world and the shortage of the legal supervision of the securies market,this paper points out that the securies market has inherent risks itself; additionally, theopen securies market may lead to domestic and international movements of funds.Hence, it is quite important to set up a well-established and well-advised legalsupervision system, thereby maintaining good order at the securies market`s openingto the outside world and protecting investors`interests. Nevertheless, as an emergingmarket economy, due to the shortage of regulation experiences and dysfunctionalsupervision regulations, we must draw on foreign advanced and efficient experiences.This paper analyses supervision patterns and regulations of the securies market inhighly-developed market economy countries, like Japan and the U.S.A. and points outthat our country should never open the securies market to the outside world excessively under the current circumstances. Finally, this paper highlights and sortsout the legal supervision measures the government currently take on the securiesmarket`s opening to the outside world. Starting from the new requirements ofsupervision conception and supervision system, this paper emphatically analyses thelegal supervision of the securies market and suggests that the authorities should set upa safe and full-order QFII legal system and keep an eye on information disclosure oflisted company overseas to improve the legal supervision structure of the securiesmarket`s opening to the outside world.