ABSTRACT
This chapter examines the regulatory framework of China's securities market. It gives an overview of the regulatory infrastructure of China's securities market and business, and discusses the laws and regulations governing stock exchanges, securities intermediaries and securities issuance. The chapter analyzes the characteristics and identifies the problems of securities laws and practices in China. China must reduce governmental intervention in order to allow the market to operate under market rules. Additionally, China should develop a securities regime that combines the strengths of both the market-based and bank-based approaches. Since the economic reforms, securities regulation has progressed steadfastly. This indicates that a competent regulation regime is the foundation of an efficient securities market. It is then necessary to first review the development of securities regulation in China. Like the United States, the Chinese securities regulations are provided in a separate code. The code itself models the US securities law in many aspects.
