Legal Refl ections on China’s Stock Market

The long-term sluggish stock market of China has got rooted in the current Chinese securities law and regulatory practice which fails to give an appropriate consideration to promoting efficiency, competition, and capital formation while focusing on maintaining the social and economic order and the public interest superficially and protecting investors nominally. Based on the provisions of the current Chinese securities law, the sluggish stock market mainly comes from the failure to integrate such three components of securities law as the public disclosure (especially IPO) system, the fiduciary system and the liability (especially civil liability) system, or rather it is mainly due to the unfair offering system, the inadequate civil liability system and the insufficient fiduciary system. Thus, correspondingly fundamental reforms are required in China. Key words: IPO system; Civil liability; Fiduciary system