Research On Legal Problems Of Foreign Securities Firms

On March 14th 2016, Shen Gang security, approved by China Securities Regulatory Commission, became the first security company which has full licenses in Shanghai Free Trade Zone. As a security invested by foreign capital, it’s not rare. It’s worth nothing that this company is invested by both H.K capital and mainland capital,and the stockholders from H.K occupied 34.85%, it’s the first security controlled by foreign capital in our country. It can be seen that the domestic development of foreign securities firms will mark a new stage in China. Actually, in order to adapt the development trend of financial globalization, most countries in the world choose to be geared to international standards, and gradually open up security market of their own, and China is no exception.As early as 2002. foreign securities firms have taken root to germinate in China; however, based on requirements of a gradual opening-up policy and the principle of prudence, China has only permitted the pattern of joint securities firms, and has set limits on proportion of shareholding.However, with the improvement of China’s securities industry and globalization of securities, China’s securities industry shows a growing trend of further opening up, which means there will be more foreign securities firms entering into China with the trend of participating in, holding shares and even being wholly-owned with its own full license. However, currently related legal norms on foreign securities firms are not formulated in time, and there are still many problems to be solved.This thesis is divided into five parts to research on legal problems of domestic development of foreign securities firms. The first part is the "Introduction", it mainly introduces the background and significance of the research on foreign securities firms, research status of these questions at home and abroad currently, and the scope of the study and methods. The second part is about the overview of foreign securities firms in China, mainly including the emergence of foreign securities firms, operating process, development history and impacts on all aspects of the society. The third part presents foreign securities firms and relevant legal systems, and concludes the inspiration. Legal attributes of foreign securities firms, its supervision and some issues in user protection are expounded in the fourth part, and the fifth part proposes some suggestions for solving the deficiency put forward in the fourth part. Finally, for the conclusion, the author hopes this research on legal problems of foreign securities firms will be conducive to improving the supervision over foreign securities firms legally and enhancing investor protection so as to accelerate long-term and healthy development of foreign securities firms. Meanwhile, the author also hopes this thesis will make contributions to the improvement of integral level.