China’s Securities Market Regulatory System Problems And Countermeasures

Finance is the core of modern economy, the stock market as an important component of financial markets, resulting in the development of China’s economic reform at a critical juncture,is in line with changes in the mechanism of state-ownedeconomy came into being. The first saddled with "state-owned enterprises restructuring" of the important functions, followed bystate investment and financing system reform, structuraladjustment and industrial state-owned enterprise systemrestructuring, improve the efficiency of resource allocation functions.The scale of the rapid development of the securities market, the government securities market also followed the normative work of the ever increasing, and gradually improved. In October1992, the State Council Securities Commission (Securities Commission) and the China Securities Regulatory Committee (SFC) is officially established, marking the country’s securities market management system to start building. July1,1999with effect from the new China’s first "Securities Act" from the legal aspects of securities market regulation establishes the status, role. Beginning of standardization and systematization of the management process.In summary, the Government has formed a set of securities and capital market supervision and regulation mode of operation of preliminary framework, with a certain scale. But Shenzhen "5.10" incident, the Shanghai "3.27" incident, a typical case of violation of discipline point of view, let us realize that the administrative supervision "legal, regulatory, self-discipline, standardize" the principle of practical significance and character of future regulatory path is also quite long. Coordination and integration in our emerging stock markets, it should be in the "Securities Act" under the guidance of the implementation of "Development and norms" of the dialectic is, the scientific concept of development, to accelerate the market development, to integration into the global economy to the process.After seeing the rapid development of China’s securities market size, while running on the current situation of view, is unhealthy (at least sub-health) of the. China’s securities market is not the. main reason for current problems of market failure, but failure of government regulation from the beginning of our government market regulation has been advertised (the pursuit),"fair, open and fair" Excellencies principle, but in fact, the market is not to our will in a free run. Therefore, the stock market as a barometer of the national economy, the government gradually to the pursuit of economic growth, social equity and financial environment, the process of full integration of safety, re-positioning of government responsibility, to develop feasible regulatory strategy, has a very important practical significance.Based on the regulatory environment of China’s stock market analysis system that our government regulatory responsibility system deficiencies, given the possible countermeasures analysis.From an economic perspective, more mature securities market regulation is based on the theory of "public interest" theory, the theory of shape in the early1960s. Public interest theory has two basic assumptions, first, market failure is inherent in the basic properties of the market, this defect will change the market order, direct cause inefficient operation of the market; second, to correct market failures caused by imperfect, only rely on external forces, by means of administrative supervision, to guide resource allocation and redistribution of interests, and thus re-order, and improve efficiency. In addition, the "behavioral finance" research also shows that, as an economic survival in a full and self-assumption does not correspond to the ideal of society. Market behavior of the deviation, determines the different market players in different environments philosophy and decision-making behavior, also contributed to market itself to show the reasons for incompleteness. Accordingly, the primary securities market regulatory system proposed three modes:government-led regulatory approach to discipline for self-management model, the intermediate mixed-mode.The government gradually to the pursuit of economic growth, social equity and environmental safety full financial integration process, re-positioning the government responsibility to develop the feasibility of strategic plans, given the ideal system architecture model has very important practical significance.