Small Investor Protection Mechanism Study China's Securities Market

After the Financial Times as an emerging market for securities big country, China’ssecurities market is characterized primarily small investors dominated the market most ofthe main position. Small investors in China’s securities market has become a major playerin objects, they are often due to the scale of a small amount of money and lack ofexpertise securities and other reasons, hard to safeguard their own interests. Partiesinvolved in the securities market is a special system, market manipulation, insider trading,false information, and so the behavior of the entire security system poses a threat ofserious damage to the stock market harmonious and healthy development.Therefore, the strong emphasis on protection of the securities market in the interestsof small investors who are healthy development of the securities market has a positivesignificance. However, the current situation is that China’s securities market has been theexistence of such a dilemma: On the securities regulatory and legal system is imperfect,under the dual defect in some aspects of legal provisions for the protection of smallinvestors increasingly strengthened at the same time, protect the interests of smallinvestors remains at a lower level.This paper is divided into four parts. The first part is the introduction, describes thebackground, purpose and significance of the study, research trends, and the existence ofthis innovation. The second part focuses on China’s securities market the concept ofprotection of small investors, the stock market concept, the general theory of securitiesregulation, the need to protect small investors. The third part, from damage manifested,institutional deficiencies, regulatory mechanisms discussed three aspects of small andmedium investors protection system problems and causes. The fourth part, a detailedanalysis of the securities market in the Legal System, how to strengthen the supervision ofthe securities market and strengthen investor risk education, the parties, after theconstruction of integrity mechanisms discussed the mechanism of protection of smallinvestors how to improve, and gives the paper the main conclusions and further researchdirections.