An Overview and Assessment of the Draft Securities Law of the People's Republic of China
Australian Journal of Corporate Law, Vol. 9, pp. 1-16, 1998
18 Pages Posted: 25 Jul 2009
Date Written: 1998
Abstract
China's enactment of its first Securities Law in December 1998 was a landmark in the development of its securities market. This new securities law sought to ensure that the regulation of its securities market was placed on a firmer legal footing. Although China had a large body of securities rules and regulations prior to the enactment of this 1998 Law, it had lacked a single comprehensive statute of the kind found in other markets. China has a rapidly developing and sophisticated body of securities regulators and securities firms as well as impressive stock exchanges in Shanghai and Shenzhen. This article charts the broad outlines of the securities law which has been under discussion prior to the passage of the law in late 1998; this debate had drawn upon Western ideas and expert opinions. However, the draft law was essentially a home grown legislative product, as was evident from the pivotal role which was given to the PRC's government regulator, the China Securities Regulatory Commission (CSRC). The Commission's power has continued to increase since the passage of the 1998 Law, as is evident from the new Securities Law that passed in October 2005. This paper focusses however on the developments leading up to the 1998 Law.
Keywords: securities law, China, legislative history, regulation
JEL Classification: K22. K23
Suggested Citation: Suggested Citation