The Dual Role of the Government: Securities Market Regulation in China 1980-2007
Journal of Financial Regulation and Compliance
Posted: 17 Mar 2009 Last revised: 15 Jul 2010
Date Written: March 17, 2009
When the government is simultaneously the owner and regulator of the securities market, the evolution of securities market regulation follows a path of compulsory institutional change. China's government authorities have played a dual role in this process by acting both as the securities market regulator and the controlling owner of the stock exchanges. This paper uses the evolution of China's securities market regulation from 1980 to 2007 to illustrate this theoretical framework. It provides unique evidence of how securities regulation evolves in response to government direction and supervision if the government is both the owner and the regulator of the securities market.
Keywords: Securities market regulation, institutional change, China's securities market, government-controlled
JEL Classification: G18, G28, G38, H11, K22
Suggested Citation: Suggested Citation