The Optimal Path For Self-regulation Of China's Incorporated Securities Exchange

Originated from spontaneity and self-government,the securities exchange has given a powerful boost to the capital markets since its first emergence.The Self-Regulation has come into being and developed together with the securities exchange,which turns out to be one of the most important functions and values of the securities exchange.Since the Demutualization Reform,a large number of membership securities exchanges have transformed into corporation form,which leads to severe tension between shareholders' interests of securities exchange and public interests.As for Chinese mainland,there have been one incorporated securities exchange other than Shanghai Stock Exchange(SSE)and Shenzhen Stock Exchange(SZSE)--National Equities Exchange and Quotations(NEEQ).In this context,this thesis attempted to begin with the historical development of securities exchange's governance structure,then abstracted and analyzed deep-seated ideas and mechanisms.Based on China's historical development in related area,this thesis analyzed the governance structure and self-regulation of NEEQ,and summed up existing problems.Rethinking about the principle of self-regulation,this thesis described the model status of self-regulation for incorporated securities exchange.Finally,it came up with optimal path for NEEQ's self-regulation.In this thesis,the first chapter is named as "the historical development of securities exchange's governance structure".This section started with the historical development and governance structure of Membership & Corporation system.Trying to give a deep analysis on governance structure development,it referred to the background,motivation and dilemma of historical development.It also discussed about the dissimilation of self-regulation in the course of history from three respects.The second chapter is titled as " the analysis on governance structure and self-regulation of China's incorporated securities exchange".First of all,it reviewed China's historical development of securities exchange's governance structure and self-regulation.This part then determined a definition of NEEQ's organizational structure,including its legal status,shareholder structure,composition of board and senior management,etc.After that,the self-regulation of NEEQ was discussed,which consists of the power/right attribute of self-regulation,as well as the significant legal relationships between NEEQ and market participants.The existing problems of NEEQ was summed up in the end.Here comes the third chapter--"the reflection on self-regulation of China's incorporated securities exchange".To begin with securities regulation ideas,it discussed about the importance of ideas,China's idea evolution and reconstruction.Based on basic comprehension of self-regulation,this section referred to three basic elements of self-regulation that Federation International Des Bourses De Valeurs(FIBV)has summarized and three management functions that absolute self-regulation organization should be equipped with,and the current situation of NEEQ's self-regulation was put into contrast analysis in this part.Then it ended up with a short summary on the model status of self-regulation for incorporated securities exchangeThe fourth chapter is titled as "the optimal path for self-regulation of China's incorporated securities exchange".The optimal path for NEEQ's self-regulation was discussed,which consists of market-oriented reform for equity ownership structure,improvement scheme for formation mechanism of board and senior management,setting up upper limit for shareholding ratio,promoting the transparency of operation decision,and coping with the relationship between self-regulation and market function.