China's Securities Market: Towards Efficient Regulation

241 Pages·2014·0.983 MB·English

by  Jing Bian

China’s Securities Market
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 secu-
rities regulation.
Jing Bian teaches in the Faculty of Law and Social Sciences at SOAS, Univer-
sity 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 eco-
nomic analysis to the field of economic growth and development. The scope
includes regional and country-s pecific studies, as well as cross-c ountry compari-
sons, to examine the evidence surrounding the pressing and interesting questions
on the growth prospects of developed and developing countries.
1 Chinese Companies and the Hong Kong Stock Market
Flora Xiao Huang and Horace Yeung
2 China’s Securities Market
Towards efficient regulation
Jing Bian
China’s 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
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 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–
China’s securities market : towards efficient regulation / Jing Bian.
pages cm. – (Routledge economic growth and development series ; 2)
Includes bibliographical references and index.
1. Capital market–China. 2. Securities–China. 3. Stock exchanges–
China. 4. Finance–China. I. Title.
HG5782.B43 2014
332'.04150951–dc23 2013030990
ISBN: 978-0-415-82277-0 (hbk)
ISBN: 978-1-315-81907-5 (ebk)
Typeset in Times
by Wearset Ltd, Boldon, Tyne and Wear
To those who love me for nothing and to those whom I have
lost forever.
This page intentionally left blank
Contents
List of figures viii
List of tables ix
Preface x
Acknowledgements xi
List of abbreviations xii
List of legislation and international agreements xiv
Introduction 1
1 The Chinese securities market and information disclosure 9
2 Listed companies’ disclosure and the role of stock
exchanges 40
3 Securities companies and information disclosure 72
4 Regulating financial intermediaries 104
5 The role and function of the China Securities Regulatory
Commission 132
6 Investor protection: problems and progress 162
Conclusion 190
List of interviews 203
Bibliography 205
Index 215
Figures
2.1 General requirement of information disclosure 46
2.2 ESS system working procedures 57
2.3 Market surveillance in the SZSE 62
3.1 The shareholder structure of BOCI 89
4.1 The structure of the Chinese bond market 112
4.2 The yearly issuance volume of major bonds in 2008 and 2007 113
5.1 Flow chart for the administrative permission approval 145
5.2 Examples of poor and good practice 151
6.1 Comparison of turnover rate 164
6.2 Information source for decision making by retailed investors 165
6.3 Income distribution of retail investors 166
6.4 Investors’ opinion on the reasons for violations of rights 167
6.5 Securities investors’ confidence index 167
6.6 Basic rights of investors 168
Tables
1.1 The reality of the listed companies reports 19
2.1 The number of listed companies (1990–2011) 41
2.2 The number of listed companies (geographic distribution) 42
2.3 Financial figures of listed companies (1992–2011) 42
2.4 Classification and percentage ratios for the transaction (HK) 54
2.5 Disciplinary punishments in 2009 (SZSE) 63
3.1 Balance of the clients’ transaction and settlement funds
ranking (2012) 74
3.2 Securities companies’ total assets list (2012) 74
3.3 Securities companies ranking (2012) (net incomes of the
underwriting, sponsoring, M&A and other consultant business) 86
3.4 Database for the candidate of independent directors 91
4.1 The growth of transaction settlements (2002–2011) 113
4.2 Regional distribution of listed companies in 2002 124
5.1 Organizational structure of the CSRC 133
5.2 The share reform (ban-l ifting & lessening holding) 137
6.1 Total number of accounts by the end of each year (2000–2011) 163
6.2 Type of securities companies and comparison of proportion 175
6.3 Statistics of the raising of protection fund 176
6.4 Example of FSCS disclosure 178