The emerging and transitional capital market in China witnesses the weak legal foundation on which the market integrity depends, the incomplete market mechanism, the imperfect accountability system of lawbreaking and faith-breaking and the inefficient integrity regulation. Lots of lawbreaking and faith-breaking behaviors could be seen in all the processes of the market operation. Due to the lack of integrity, investors' interests have been harmed and the sound development of capital market has been affected. Therefore, the legal and integrity construction is still a fundamental, systematic and long-term task in the development of the capital market.
To promote relevant research, the Shanghai Stock Exchange (SSE) will join hands with Peking University, Renmin University of China and East China University of Political Science and Law to hold the 3rd "SSE Legal Forum" with the theme of "Integrity and Legal Construction of Capital Market" at the end of 2012. The forum hereby solicits papers from experts and scholars in the theory and practice circles worldwide. A paper appraisal will be organized then, with the outstanding papers to be published in the "On Securities Law" (Volume VII; the publication is expected in November 2012). Contributions to the 3rd "SSE Legal Forum" will be regarded as contributions to the "On Securities Law" (Volume VII). Contributors should pay attention to the following issues:
I. Scope of Papers
Contributions are expected to be research papers on the theme of "Integrity and Legal Construction of Capital Market", with the proposed research directions and perspectives as follows:
(I) Faith principle and legislation for the capital market
With the continuous perfection of the legislation system of the capital market, the legal environment of the market integrity has been optimized and the faith principle has been confirmed in a series of important legislations for the capital market. Under the above background, contributors could evaluate the overall situation and specific aspects of the integrity legislations for the current capital market, summarize existing problems and fully discuss the specific implementation path of the faith principle in legislation concepts, systems and rules and even policy formulation for the capital market.
(II) Integrity regulation system for listed companies
With the continuous implementation of special governance of listed companies, listed companies have gradually formed integrity-oriented behavioral models and norms, which owed to the participation of passionate investor groups including institutional investors and small and medium-sized investors into corporate governance, the increasingly effective supervision on the behaviors of listed companies by the media, the short selling mechanism and the securities analysis industry, the continuous and effective supervision on the listed companies by the reformed and perfected delisting system, and the steadily standardized operation level of listed companies in China. Under the above background, the public has paid attention to issues including how to further strengthen the integrity norms of listed companies and prevent false statements, how to effectively ensure shareholders' rights to participate in corporate governance and how to standardize the emerging market-oriented constraint mechanism.
(III) Integrity regulation system for intermediary service institutions
As the "gatekeeper" of the capital market, the duty fulfillment of intermediary institutions is conducive to the improvement of the market integrity. Due to serious faith-breaking behaviors like PE corruption in many processes such as securities issuance, listing and trading as well as financial innovation caused by the worse integrity awareness of intermediary institutions in China's capital market, it is very urgent to institutionally strengthen the integrity norms of intermediary institutions. The system of integrity norms of intermediary institutions should cover the confirmation of integrity obligations of intermediary institutions, the internal control system for integrity supervision of intermediary institutions, the external reputation evaluation system of intermediary institutions, the interest conflict avoidance mechanism, the integrity selection mechanism and other aspects.
(IV) Integrity regulation and system for investors
The capital market in China is in the emerging and transitional phase, where speculation on new shares, small-cap stocks, bad-performed shares and short-term investment are serious; traditional rule-breaking activities including insider trading, short-swing trading, market manipulation and rat trading are still prevailing; rule-breaking activities including shareholder's rule-breaking holding of shares and abnormal changes of controlling rights that violate the principle of "Openness, Justice and Fairness" are still common. Under the above background, how to establish integrity norms for investors' behaviors and guide rational investment is of significance to the market's sound development.
(V). Integrity regulation system for the capital market
Administrative regulation is crucial for the integrity regulation system of the capital market. For years, the regulatory authorities have closely combined the integrity regulation and the legal system construction for a good result in the securities regulation. Self-regulatory management of the stock exchanges and other self-regulatory organizations are indispensable parts of the integrity regulation system of the capital market. As the domestic capital market is transforming from an emerging market to a mature one, it is necessary to conduct an overall research on how to give full play to the role of integrity in administrative regulation and self-regulatory management. The integrity regulation system of the capital market involves the legality of integrity records in administrative regulation and self-regulatory management, the evaluation on the integrity of market participants, the disclosure of integrity information and other important systems. Under such circumstances, it is of great practical value to take measures for further improving the efficiency of integrity regulation and protecting the legal rights and interests of market participants.
(VI) Securities litigation and the capital market's integrity
As one of important parts of integrity guarantee mechanism in the capital market, the litigation remedy will be granted to the securities market participants due to fraud and faith-breaking behaviors. Currently, the long-term absence of China's securities litigation has been considered as the weakness in the promotion of the integrity construction of the capital market. According to the current situation and requirements of the reform and innovation of the capital market, it is of high theoretical and practical values to study the securities litigation more pointedly and the perfect resolution mechanism for other non-litigation disputes in light of the actual situation of the domestic market, confirm the securities litigation evidence system suitable for electronic trading by establishing group litigation and perfecting shareholder representative litigation, and give full play to the vacancy-filling function of integrity in securities litigation.
II. Contribution Deadline
The end of September 2012
III. Requirements for Contributions
1. Scientific argumentation, sufficient evidence, rigorous logic, clear-cut structure and fluent expression are expected from the contributions. The market-oriented contributions with high academic quality and practical value are especially expected. About 10,000 characters are perfect for each contribution. Extraordinarily outstanding ones, however, will not be subject to the limit.
2. Please send your contributions, which comply with the national regulations on copyright, the generally accepted academic standards and the requirements specified in the "Layout Style" of the "On Securities Law" (Please refer to the "On Securities Law" and the "Research & Publication" column on the official website [www.sse.com.cn] of the SSE), to zqfy@sse.com.cn.
3. The editorial office of the journal reserves the right to make literary and technical amendments to the contributions. Articles published in the journal do not represent the stance of the SSE. Authors of the articles shall take all legal responsibilities in that regard. Except those with special statements, all the opinions expressed in the articles are personal and have nothing to do with the authors' positions or employers.
4. Contribution to the "On Securities Law" will be viewed as authorizing the journal to include the papers into the "Online Publishing Database of China Academic Journals", CNKI Series Database, chinalawinfo.com (Peking University Legal Information Network) Journal Database, Wanfang Database, and other academic resource databases recognized by the journal. The royalties paid by the journal to the authors include the copyright royalties of the above databases. Please specify any objections in your contributions so that the journal can make arrangements accordingly.
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Shanghai Stock Exchange: Notice Of Paper Solicitation For 3rd "SSE Legal Forum" Also "On Securities Laws" (Volume VII)
Date 15/06/2012