Looking At Chaina's Financial Market Supervision Reforme And Perfection From The "Bao Wan Dispute"

In 2015,there were some fluctuations in China's stock market.Among them,the dispute between Vanke and the “Bao Neng Department” has become the focus of attention from all walks of life.The “Bao Wan dispute” involves many means of equity acquisition to increase the leverage.The risks brought by the financial market are self-evident.Although the “Bao Wan Debate” is the result of the Bao Power Department's continuous purchase of Vanke shares,it appears that it is a takeover action in the securities market and should belong to the Securities Regulatory Commission to exercise its supervisory authority.However,through the penetration of the “Bao Neng Department” sponsorship source of funds for China Vanke,it was found that the sources of funds used for the acquisition of China Vanke are various,including insurance funds,which are mainly regulated by the CIRC,and that are supervised by the China Banking Regulatory Commission.Money management,etc.The source of funds used for equity acquisition alone does not only involve the supervisory authority of the Securities Regulatory Commission,but also the supervision of the China Insurance Regulatory Commission and the China Banking Regulatory Commission.The dispute over equity did not end until 2017.The capital operation mode during the acquisition process sounded the alarm for the supervision of China's financial market.The collective voice of the China Insurance Regulatory Commission and the China Banking Regulatory Commission also demonstrated the importance attached to this incident.This also led to the thinking of China's current financial market supervision mode.After the incident,the three major regulatory agencies have conducted joint judgments on some of the issues involved,but the new regulatory issues behind the “Bao Wan dispute” have put forward requirements that cannot be ignored in the reform and improvement of the regulatory model of financial markets..In the “Bao Wan dispute” process,the acquirer applied various means of equity purchases,including the use of insurance fund placards,margin financing,profit swaps,equity pledges,and asset management plans,but penetrated the source of funds.It is found that these complex leveraged buyout methods involve multiple financial sectors,evade legal supervision,have different levels of risk cross-market transmission,economic “going out”,imperfect regulatory rules,etc.,which reflect the current situation in China.The lagging nature and various incompatibility of the financial regulatory level with respect to the market conditions of mixed operations.We should follow the reform concept of stability,progress,guidance,prudential supervision,promotion of development,respect for the market,and supervision,and update the regulatory objectives and principles of China's financial market.In the face of mixed financial market conditions,other countries have chosen a regulatory model that suits their national conditions,including an umbrella-style functional structure,a unified supervisory model,and a “two-peak” regulatory model.Analyzing the different financial regulatory model choices in these countries can be seen in the direction of the financial regulatory reform under the conditions of mixed operations.Therefore,according to China's financial supervision,we can learn from the "double-peak" supervision model,improve our country's financial supervision joint conference system,establish effective communication and consultation mechanism between the supervisory departments and establish supporting measures for the effective implementation of financial supervision.