Securities regulation in China : a study of its path to market economy
University of British Columbia
Master of Laws - LLM
The experiment currently underway in developing securities markets in China have met with initial success, although, as has been mentioned throughout this thesis, there are a considerable number of issues still to be addressed over time. Many of the issues will probably be resolved by trial and error as various participants in the market ~ the regulators, the exchanges, the intermediaries, the issuers and the investors ~ develop more experience. Central to the problem of securities regulation in China is that none of the Western-style corporate and securities frameworks proved to be the essential vehicle for private Chinese economic development that their creators had envisioned. In responding to this question, this thesis concludes that China's new securities program is a process and must be recognized as such. In this process, the transformation of a system, inclusive of all sectors, that is wholly based on state ownership to one that functions by the rules of the marketplace, takes time and effort. The US model may be useful in certain contexts, but China's securities regulation should adhere to an approach compatible with its culture and reflective of its distinct political system and the humiliating history of the last two centuries. Chinese people, after many rounds of debate extending over more than a century, have come to realize the tremendous need for, and potential benefits from, building a strong country in favor of the Western style democracy and mode of regulation. The pace and uncertainty of this unique transition frighten as many Chinese as they embolden. Whatever the Chinese are on the way to becoming, the following counsel have to be offered: Naixin. Patience. Xuyao shijian. It takes time.
Law, Peter A. Allard School of