China's
securities experiment: the challenge of the globalization
Abstract
This
article examines the development of China's securities market,
explores some resulting legal and institutional paradoxes,
and discusses how to solve them. Firstly it describes the
historical development of the market and its current scale.
The emergence and development of the securities market in
China truly reflects the transition of a once soviet country
from pure socialist public ownership to a mixed economy,
namely, part socialism and part capitalism. Secondly it
presents a comprehensive description of the legal framework
of China's securities markets, including securities issuance
and trading, and market regulations. This part also describes
how this framework affected by international, especially
by western community. Thirdly it gives a detailed discussion
on foreign involvement in the market, particularly on B
shares that can be traded by foreigners, and on China's
overseas listings. The fourth part explores the GATS's impacts
on China's securities market, indicating that, to meet the
WTO requirements, China must conduct reforms to nondiscriminatively
admit foreign firms into its domestic markets. The final
part analyzes current problems that might stifle the further
development of China's securities markets, concluding that,
in order to foster a successful securities market, China's
only solution is to foster privatization of its State-owned
enterprises.
Contents
Introduction
I.
Historical Development and Current Scale
II. Legal Framework Under National
Laws
A.
Securities Legal Framework Under International Influence
B. The National Securities Law and its Scope of Application
C. Stock Companies and Securities Issuance
D. "Chinese Classification" of Stock
E. Market Regulations
F. Regulations on Acquisitions
G. Regulations on Securities Industries
III.
Foreign Investment In Chinese Securities
A.
Foreign Investment Shares Listed in China - B Shares
B. Overseas Listing
IV.
The Inevitable Reform Driven by WTO
A.
GATS Overview: The Premises of GATS on Financial Serives
B. GATS Impacts upon China's Securities Markets and Regulatory
Syetems
V.
Analysis and Conclusion
A.
Reforming SOEs through Transforming Them into Stock Companies:
A dream? A Game?
B. Road Ahead: Relinquish State Dominance and Government
Control of economy.
C. Conclusion.
