Both the amendment work of the “Securities Law” and the formulation work of the “Futures Law” should be listed into the legislative regulation and the 2013 legislation work plan of the 12th NPC, in a bid to launch the amendment procedures for the “Securities Law” and the formulation procedures for the “Futures Law” as soon as possible.
Gui Minjie, Member of the CPPCC National Committee and Governor of the Shanghai Stock Exchange (SSE), submitted the proposal of prompt launch of amendment to the “Securities Law” and that of boosting the formulation work of the “Futures Law” to the 1st session of the 12th NPC recently. Gui suggested that the amendment work of the “Securities Law” and the formulation work of the “Futures Law” should be listed into the legislative regulation and the 2013 legislation work plan of the 12th NPC, in a bid to launch the amendment procedures for the “Securities Law” and the formulation procedures for the “Futures Law” as soon as possible.
The Chinese capital market has witnessed an array of innovations, rapid growth, and great changes over the past years, while the transformation from an emerging market to a mature one is being accelerated as well. However, the “Securities Law” has lagged behind the innovation and development of the market considerably since its enactment in 2005. It is required that the “Securities Law” should keep pace with the era. The reform of the share issuance market consistently boosted calls for an amendment to the securities issuance system in the “Securities Law”. The securities business innovation in rapid growth calls for looser regulation by the “Securities Law”. The unbalanced growth of the bond market calls for an all-round arrangement by the “Securities Law”. The multi-tiered over-the-counter markets diversified continuously calls for a response from the “Securities Law”. The booming securities private placement market calls for rationalization by the “Securities Law”. The reform of the exchange systems unremittingly propelled calls for systematical arrangement of the “Securities Law”. Finally, the ongoing promotion of the capital market’s opening-up and cross-border supervision calls for legal support from the “Securities Law”.
Gui suggested that led by the relevant authorities of the NPC, with the China Securities Regulatory Commission (CSRC) involved as well, surveys on amending the “Securities Law” should be made by way of visiting, questionnaire, statistics, and others. Especially, efforts should be made to study the profound problems affecting the innovation and growth of the capital market, such as the public issuance systems of securities, the regulation on securities private placement, the development of the bond market, the construction of over-the-counter markets, the regulation on unlisted companies, and the market’s opening-up, so as to specify the orientation and highlights of amending the “Securities Law”. Besides, a drafting team of the “Securities Law (Proposal Draft for Amendment)” should be established. Namely, all walks of life should be guided to study the amendment to and perfection of the “Securities Law”, in a bid to work out the “Securities Law (Proposal Draft for Amendment)” according to relevant research fruits.
On the other hand, the Chinese futures market has experienced a period of soaring innovation and amazing growth in recent years, while the "Regulations on Administration of Futures Trading" (the "Regulations” for short) has been dominating over the Chinese futures market. Nevertheless, the "Regulations", of which order of law and effect are not enough, can not meet with the further legal requirements put forward for the innovative and standardized growth of the futures market. In the Chinese futures market, the transformation from quantitative changes to qualitative ones needs legal support from the “Futures Law”, which will also define the difference between the regulation on securities and that on futures.
Gui also suggested that led by the relevant authorities of the NPC, with the CSRC involved as well, further surveys on the formulation of the “Futures Law” should be conducted. Particularly, more endeavors should be made to survey the fundamental contents of the “Futures Law”, such as the purpose and the scope of legislation, the relevant systems of futures exchanges, the futures intermediaries and service providers, the basic rules for futures trading and settlement, the risk control and management, the protection of investors’ rights and interests, the futures associations, the management on futures regulation, and the legal responsibilities. Moreover, a drafting team of the “Futures Law (Proposal Draft)” should be established to make in-depth research and detailed argumentation on the “Futures Law (Draft)” to be worked out by the NPC and the CSRC, after which the “Futures Law (Draft)” will go through an overall amendment with reference to relevant research achievements.
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Shanghai Stock Exchange Governor’s Proposal: Prompt Amendment To “Securities Law”
Date 07/03/2013