The Research On The Legal Supervision Of Hot Money Manipulate The Index Futures Market

Driving by the financial globalization,China's securities market and index futures market are accelerating the liberalization.But our index futures market is late development and driven by policy,the market regulations are not perfect as well,no matter the laws or the regulations,all require improving.Hot money's characteristics are profit-driven,strongly liquid,short-term capital.Hot money has always been interested in the index futures market which's highly leveraged and low costly.Compared with the normal international investment,the hot money is more opportunistic and concealed.They enter into china through the legal channels,such as direct investment and trade,foreign debts,or as the QFII invest.Then the inventers will outward remittance,when they get the profit from the securities and futures markets,by the way of trade or investment returns to remit abroad.Therefore,it is difficult to effective regulate the hot money.But if not implement strict regulations,once appear market manipulation,the development of the securities and index futures markets will be seriously delay,and spread to the whole economic market.This paper analyzed the reasons why that the numbers and scale of Hot money's increase,learning the advanced international experiences,and puts forward suggestions of perfection our regulatory system.In order to provide the beneficial references that supervising the hot money manipulates the index futures market.The first part is an overview of hot money manipulates the index futures market.The stock market and the index futures market are significant correlation,hot money distorted the price of the stock or index future deliberately,in order to chase high profits.Because of the potential appreciation of assets in China,the continued appreciation in the exchange rate,higher interest rates and tax preferential policies to encourage the hot money flows frequently in our securities market.If not control and guide effectively,it could trigger a market system risk.The second part is the basic theories of legal supervision of hot money manipulate the index futures market.Law provide a stable environment for the development of index futures,and be able to prevent and dissolve the market risks.Current multiple regulatory mode cannot deal with the problems which arising from the market development,thus put forward the unification supervising and managing pattern to re-configuration of the administrative functions.At present our country supervision institutions have the trend of combination,and have set up a collaboration regulatory system,which provides feasibility to perfect the legal supervision.The third part introduced our country's supervision system about hot money manipulate the index futures market.The State Administration of Foreign Exchange(SAFE)supervise the hot money,China Securities Regulatory Commission(CSRC),China Financial Futures Exchange(CFFEX),and futures association supervise the index futures market.But the regulators division is not scientific.About the specific supervision mechanisms,our country introduces the QFII to reduce the impact of foreign speculative capital.But the supervision mechanisms which preventing manipulation still need to improve.We have signed memorandums of cooperation with many countries and areas,and participated in the international financial organizations.The fourth part is the international experiences about the legal supervision of hot money manipulate the index futures market.Taiwan region completed the internationalization smoothly with the aid of QFII.Chile translated the short-term capital inflows into long-term capital in the process of exchange rate opening by implementing Tobin tax.Japan reformed the foreign exchange law gradually completed the market liberalization.The U.S.futures market established a labor division and cooperation regulation system,at the same time,developed comparatively flexible index futures market supervision systems.The fifth part is the improve advice of hot money manipulate the index futures market supervision system.Suggesting practice unification supervising and managing pattern in our country transferred the duties of front-line regulation form CSRC to CFFEX.The strong correlation regulators should set up the mechanism of collaboration,set up information exchange system,and risk warning mechanism,strengthen the international supervision cooperation.Improve the legislative level,thin turn the laws,stable supply policy,clearly definite index futures manipulation,and levy Tobin tax increase the cost of hot money speculation.