Research On The Effectiveness Of Chinese Security Market Regulation After The Subprime Mortgage Crisis

With the development of science and technology, financial globalization is developing continuously, the risk of the financial market are also increasing. With the outbreak of the subprime crisis, make the countries all over the world recognize the importance of strengthen supervision, especially the importance of the regulation of the securities market. Under international financial crisis, financial regulators reform, construction and supervision of the securities market reform, the study of the regulation of the securities market, to find ways to improve the securities regulatory performance is more realistic and urgency. Our country’s securities market is an emerging and transitional securities market. Which has established a centralized and unified regulatory structure mode, but its inefficient supervision is apparently a real noticeable problem. Analysis of the factors that influence the effectiveness of Chinese securities market, combined with the subprime mortgage crisis regulatory reform of Chinese securities market, use the empirical analysis of regulatory changes in the effectiveness of the proposed policy recommendations to improve the efficiency of Chinese securities market supervision, with both significance of the theory and reality.Price discovery is the basic function of the stock market. Objectively, Full and truth information are the premise of the effective securities market. Information disclosure is the main way for investors and the securities regulatory authorities to know and supervise the listed companies. If the stock price can reflect the market information promptly, therefore, we can the effectiveness of the market from the volatility of the share price. If the stock price and market fluctuations are synchronized, it can be inferred that the market is ineffective; on the contrary, it is effective. This article use western economics efficient market theory as a starting point, using a combination of theoretical and empirical analysis. Analyze the effectiveness of the before and after subprime mortgage crisis of Chinese securities market supervision, and put forward some policy recommendations.This paper is divided into five parts. Part one contains a summary of the article the research background and significance of the topic, the literature review, as well as the content of the study and research methods innovation and articles inadequacies. The second part lists the analysis of the validity of the theory of traditional securities market regulation, make a distinction between the theories of the effectiveness and efficiency of the securities market and analyze the factors that influence the effectiveness of securities market regulation. Analysis of the securities markets validity conduction process and list the securities market monitoring of the effectiveness of methods and indicators. The third part analyzes after the subprime mortgage crisis the financial reform means of the United States, the United Kingdom and the European Union, followed by the cited regulatory changes in the way our country in this regulatory reform. Take the analysis of after the subprime crisis of our country’s performance the effectiveness of the international securities regulators into the main section. Finally, the new features of the securities market regulatory reform and regulatory effectiveness of these measures. The fourth part is mainly about the empirical analysis. Use the before and after the crisis period of time’s data sample and use Hurst index and R/S analysis method and analysis of sample data to test the validity of the Chinese stock market information from the microscopic description of the changes in the efficiency of Chinese securities market supervision. The last part analyze the means and ways of international securities regulatory reform, contact with the Chinese real situation and give suggestions that China should get inspiration from international reform and improve Chinese securities market supervision. Making a further discussion of the mechanism for the Chinese securities regulatory efficiency improvements in real.The recommendations about the efficiency of Chinese securities market supervision:First is to strengthen the information disclosure and enforcement. Improve the efficiency of the regulatory review; especially strengthen the penalties of the disclosure of irregularities and false information. The second is to improve the regulatory structure and regulatory approach to improve the level of supervisory personnel and to promote the development of the securities self-regulatory organization to help the Commission to improve and perfect the supervision work. The third is to improve the quality of listed companies, and the listing and delisting system of listed companies, at the same time to promote the securities regulatory innovation. The fourth is to strengthen the protection of the interests of investors, to protect the interests of investors from legislation.