Study On The Government Regulation Of China’s Securities Market

As an important component of the financial market in China, the stability of the securities market will influence the stable growth of the whole economy. Governments in all countries have paid more attention to strengthen market supervision to obtain the healthy and sustainable growth of the industry especially in the current world economy development background characterized by globalization and acceleration of the international capital flow. China’s securities market has come into existence and has grown to adapt to the opening-up policy and the economic development of the country. In the retrospection of the development of China’s securities market, it has only spent30year to make the amazing achievement while the other countries spent much longer or even over a hundred years to make it. But there are also many irregularity actions and rule-breaking behaviors accompanied by these achievements. There are many problems in the market development procedure. There are also huge gaps between the market supervision and the rapid growing development needs in the reality. Strictly to say, our securities market is still irregular and pre-mature. There are many problems in its development procedure that have never happened in the other securities markets of the developed countries.According to the previous research results, this paper firstly elaborates the details of the definition and the relative theories of the government supervision in China’s securities market and analyzes the current situation and the necessity of the market supervision. The development of securities markets improved the profit model of financial institutions, enhanced the ability to resist risks in financial markets, and also promoted socio-economic reforms. However, China’s securities market is a weak-efficient market, exist market failure, have a high risk and speculative characteristics, so, government regulation is necessary for our country’s securities markets. Then this paper analyzes into depth the problems of the government supervision in China’s securities market. The original intention of the birth of China’s securities market is to defend the state-owned development. Therefore, the deviations exists a long time between the concept of securities regulatory authorities to monitor deviations and regulatory objectives. In the actual,also exists the regulatory process and regulatory functions of government offside, dislocation, and the absence of other issues, securities self-regulatory organization and the current auxiliary function has not been full, the relevant regulatory laws, regulations and other factors is not perfect there,"three fair" principle in China’s securities market is difficult to be truly realized. Finally this paper proposes strategies and solutions specifically regarding to these questions in order to facilitate the stable and healthy development of China’s securities market. The solutions include building right concept of government supervision, well defining power and responsibility of government supervision, perfecting market mechanism, improving relative regulations and laws.