Jing Bian - Chinas Securities Market: Towards Efficient Regulation

This book provides an analysis of the development of the Chinese securities market, with special reference to the information disclosure regimes in Mainland China, UK and Hong Kong. It examines the listed companies, stock exchanges, securities companies, financial intermediaries, financial regulators and investor protection of the system in China, the UK and Hong Kong. The book looks at the role and functions of the securities regulatory commission, and highlights the details and insights that generally reveal the past and current status of the information disclosure regime in the Chinese securities market. By identifying problems and their reasons, the book forms an approach to further develop securities regulation.

Jing Bian teaches in the Faculty of Law and Social Sciences at SOAS, University of London, UK.

Routledge economic growth and development series

Series Editor Linda Yueh
Fellow by Special Election in Economics at St Edmund Hall and Director of the China Growth Centre, University of Oxford, UK

The aim of the series is to publish a series of books that applies rigorous economic analysis to the field of economic growth and development. The scope includes regional and country-specific studies, as well as cross-country comparisons, to examine the evidence surrounding the pressing and interesting questions on the growth prospects of developed and developing countries.

Chinas Securities Market
Towards efficient regulation
Jing Bian

Chinas Securities Market

Towards efficient regulation

Jing Bian

First published 2014
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

and by Routledge
711 Third Avenue, New York, NY 10017

2014 Jing Bian

The right of Jing Bian to be identified as author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library

Library of Congress Cataloging in Publication Data
Bian, Jing, 1976
Chinas securities market : towards efficient regulation / Jing Bian.
pages cm. (Routledge economic growth and development series ; 2)
Includes bibliographical references and index.
1. Capital marketChina. 2. SecuritiesChina. 3. Stock exchanges
China. 4. FinanceChina. I. Title.

ISBN: 978-0-415-82277-0 (hbk)
ISBN: 978-1-315-81907-5 (ebk)

Typeset in Times
by Wearset Ltd, Boldon, Tyne and Wear

The Chinese securities market has been established and remarkably improved in a relatively short period. However, it still remains at an early stage with a developing supervision mechanism on information disclosure. It has been adversely affected by malpractices of violations of the information disclosure regulations: many incidents and scandals have caused significant negative impacts to the market.

The book provides a critical and comparative legal analysis of the development of the Chinese securities market, with special reference to the information disclosure regimes in Mainland China, UK and Hong Kong. It aims to examine the supervision mechanism of information disclosure, the transparency of the securities market and the legislative techniques of information disclosure in the Chinese securities market. In this book, legislative and case studies have been carried out. In addition, relevant theories are reviewed, including information asymmetry, Efficient Market Hypothesis and corporate governance theory. Further issues, for instance listed companies and stock exchanges, have been examined. Moreover, the following topics have been covered: how to evaluate the performance of the securities companies, in particular, in the aspect of information disclosure? How to further enhance the regulatory regime for the Chinese intermediaries? Is the China Securities Regulatory Commission efficient? Has the Chinese legal system provided the investor with a strong legal protection framework?

The book generally reveals the past and current status of the information disclosure regime in the Chinese securities market. Although much has been achieved, there is still a long way to go. With the identification of problems and the causes, an approach to further develop the securities regulation can be identified, in particular with regards to the information disclosure system in China. Reforms are needed both to the current legislation and to the practices and procedures of regulation.

This book is based on my original PhD research. In preparing the book, special appreciation is owed to my research panel: Dr Richard Alexander, Professor Laixiang Sun and Dr Sanzhu Zhu. In the company of their encouragement, inspiration and guidance, I have completed my book. Without their continuing help over the years, the research would have remained fruitless. In particular, with their continuing support, I brought myself into the academic world. I would also like to give my special thanks to those who directed, advised and motivated me.

In conducting my PhD research, funding was received from the Central Research Fund (University of London), Great BritainChina Centre, SOAS Additional Fieldwork Award, SOAS Conference Grant and AHRC Generic Training Fund. I am grateful for the generous support from them.

Additional thanks are given to my mother and brother, who generously support me all the time. Appreciations are given to Mr John Gears and Mrs Shirley Gears, who made England my second home during my study. I am also grateful to the editors.

This book is especially for those who love me for nothing and for those whom I have lost forever.