Research On Cross-Border Supervision Of Securities Market On The First Case Of "Shanghai-Hong Kong Stock Connect" Program

With the development of economic and network technology,the globalization of the securities market has continued to deepen.When capital elements are freely circulated and optimized in a larger scope,the number of cross-border transactions such as overseas investment volume and cross-border investment portfolios has increased,and the links between investors and exchanges in various countries and regions have become closer.At present,there is no accurate concept for the globalization of the securities market academically,but we can also see from the whole transaction process that investors and intermediaries including the exchange are important participants.The openness of a country's capital market is not only the volume of transactions,but also the national policies,judicial sovereignty,improvement of supporting facilities and protection measures for investors.We can see the number of companies listed on the Shanghai Stock Exchange ?Hong Kong Joint Stock Exchange or NASDAQ exchange.At the same time,we can also see the penalties for insider trading and cross-border manipulation.Therefore,we have to admit that the existence of these data not only proves the results of the opening of the securities market,but also must clearly understand the risks of cross-border transactions and the necessity of supervision.The International Securities Regulatory Commission was established in the early 1980 s to promote cooperation between global securities regulators,especially regarding standards development andinformation exchange.In 2017,38 principles were also implemented under the legal framework to achieve regulatory goals.At the same time,since it should be based only on the legal provisions and trading rules of a country or region,and now it is two countries or even multiple countries,the differences in jurisdiction and legal system trading rules and cooperation supervision are issues that we need to consider.At present,the capital markets of various countries and regions in the world are constantly opening up.From the reform and opening up to the development of the“Belt and Road”,although it has started late due to historical reasons,the level of modernization has not reached the advanced level but with the continuous advancement and renewal of technology,Chinese securities market is constantly developing and progressing in the face of the historical opportunity of the globalization of the securities market.Since 2002,the channel for foreign capital to enter the Chinese mainland stock market is China's qualified foreign institutional investor,QFII.In 2011,in order to introduce more investors and introduce RMB into the RMB,qualified foreign investors,namely RQFII,expanded financial instruments.The type also simplifies investment quotas and revenue and expenditure management.In addition to the above two cases,foreign investors are allowed to make strategic investments in listed companies and non-listed companies with FDI shares.The CSRC has opened up the shareholding ratio of foreign investment in securities companies to 51%,which is a positive impact on the whole industry.However,the opening of the financial market itself is a double-edged sword.It is also a test of risk prevention capabilities and crisis emergency levels.There is also the opening of the2014 Shanghai-Hong Kong Stock Connect and the 2016 Shenzhen-Hong Kong Stock Connect,which is the two-way pace of cooperation between the mainland and Hong Kong.It is not only a sign of the opening of the Chinese securities market,but also the opportunity for a circulating dinner to become a reality is an unprecedented challenge.After the emergence of the "Shanghai-Hong Kong Stock Connect" and "Shenzhen-Hong Kong Connect" projects,new elements such as new technologies and new methods came into being.On this basis,there are new opportunities for securities market violations such as insider trading behavior,market manipulationbehavior and information disclosure system differences.When an act takes place within a country,it certainly does not apply to the corresponding legal provisions of the country,but now it faces the status quo of cross-border interconnection of capital elements.Therefore,the first thing we must consider is the regulatory cross and the regulatory gap.due to different historical environments and political and economic developments,and there will be differences in the identification and punishment of the same illegal act.Different considerations,at present,there is no unified regulation in the two places.For example,if there are stocks suspected of market manipulation in Hong Kong,the relevant entities will usually be required to provide transaction records,call records or bank statements in the past few months.Wait,and the mainland usually relies on big data self-monitoring,and the law does not explicitly give the securities regulator such power.Then,when an illegal act occurs,the two sides may encounter different difficulties in causing unequal treatment or mutual legal assistance in areas where they are not unified.For example,if the mainland regulatory authorities do not have the corresponding powers of the Hong Kong regulatory authorities,then what scope should they provide assistance? In the process of cooperating with the investigation,how can we solve the problem of power disputes?How should the Mainland Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission improve securities regulatory laws and regulations to achieve comprehensive supervision of the securities market? Under the interconnection mechanism,it has become the top priority for the future of the more open securities market to upgrade the level of supervision in the Mainland.The opening of the Shanghai-Hong Kong Stock Connect project is undoubtedly good news for investors from both places and the Chinese securities market."Several Provisions on the Interconnection Mechanism of the Mainland and Hong Kong Stock Market Transactions",Memorandum on Regulatory Cooperation,Memorandum of Understanding on Law Enforcement and Securities The implementation of a series of normative documents and rules,such as the Memorandum of Understanding on Futures Cooperation,has relatively ensured the smooth operation of Shanghai-Hong Kong Stock Connect,which has made the mainland and Hong Kong capital marketsmore integrated,and has enhanced the international influence of China's securities market.Confidence,but there are still many problems in the transaction process and the current trading situation,especially in cross-border supervision cooperation.At the same time,with the occurrence of the first case of the cross-border market manipulation of Shanghai-Hong Kong Stock Connect,we must have to sound our alarm.We must also recognize that the open market needs supporting market rules,regulatory concepts and methods.The opening of the market is bound to be the capital of China.In the context of the development of the regulatory system and regulatory concepts and methods in the market construction and development,this paper first introduces the relevant institutional arrangements of the Shanghai-Hong Kong Stock Connect project in the context of the globalization of the securities market and the gradual opening up of the Chinese market,with a sensational Tang Bo and his gang's cross-border market manipulation case is the entry point.It elaborates on the process of cross-border transactions between the mainland and Hong Kong,the causes of the cases,etc.It also further analyzes the problems existing in the two places,including the differences between the transaction process and the regulatory system.,jurisdictional gaps or overlaps,cross-border enforcement,and investor protection.Finally,combined with China's basic national conditions and economic situation,we will use the perspectives of the two places and internationalization to explore and propose proposals for improving cross-border supervision,from the existing legal system to the legislative and enforcement powers of the regulatory bodies,and further strengthen the cooperation between the mainland and Hong Kong.Establishing a judicial assistance system and protecting the interests of investors,and solving these regulatory issues are the focus of this paper and the value.