A Masterpiece In Further Studies on The Self-Regulation of Securities Industry in China - on Reading
Journal Title: International Journal of Financial Markets - Year 2014, Vol 1, Issue 4
Abstract
With the emergence of financial crisis occurred in 2008, those most affected states vigorously started to conduct out relevant reform on their domestic financial supervision systems regarding financial market structure, reconfiguration of financial supervision ideals, and supervisors’ duties. In this process, they rethink and rebuild their respective financial market supervision systems, and one significant controversy is the mode and role of self-regulation in the post-crisis financial supervision order. This issue has been widely disputed domestically and internationally among academics and policy-makers. So far, however, this kind of debates has exhibited some apparent flaws in relevant systems. In the current development of financial market, although the US financial crises led to the collapse of financial credit, and thus people in general start to doubt the efficacy of self-regulation system in financial service industry, we should realize that the choice of self-regulation should no longer be a political one. Due to the complication and globalization of financial markets, any government shall inevitably encounter the problem of regulatory arbitrage when they try to have overall control and management of financial markets. Only with the active participation of the financial industry into financial market and relevant management can this vicious cycle be broken. Therefore, a reform without the involvement of financial industry constitutes a serious defect and omission. In the whole financial market, obviously the securities market is the most complicated part. In securities market, the investment risks is the highest level, an effective supervision is also the hardest, and the cross-border alliance occurs most frequently. What’s more, each subsequent economic turbulence originated from the abruption of financial storm is essentially evolved in the capital market. Therefore, the self-regulation system in the securities market should be the priority in the reform of financial supervision system. The reason why the self-regulation in securities industry has aroused so much attention and become the focus of the reformation to the financial supervision system lies in the fact that the status quo of the selfregulation in securities industry is dissatisfactory, facing problems such as incompetence in self-regulation, marginalization of self-regulation, or faith breaking of self-regulation in the face of conflicts of interest. Although many factors contribute to the above problems, the primary reason lies in the “tendency towards public right” of self-regulation in securities industry. To put it in another way, all the superficial phenomena denoting incompetence of the self-regulation in securities industry lies in the “tendency towards public right”. Against this background, the monograph Research on the Tendency of Public Right in Self-Regulation in Securities Industry by Professor Lou Xiao was published by Intellectual Property Right Press in July 2014, which appears at just the right time. In China, this book is the first comprehensive one focusing on the issues about the tendency towards public right of self-regulation in securities industry, mainly including analyzing the reasons for and evolvement path of the tendency towards public right of self-regulation in securities industry and probing into the possible corrective approaches to the tendency. Generally, this book has very import theoretical significance and high reference value in practice.
Authors and Affiliations
Zhao Jinlong
Keywords
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