The Research Of The Demutualization Of The Global Stock Exchanges And The Improvement Of The Securities Market’s Governance Of China

From the establishment of the world’s first Stock Exchange to the1990s, membershipsystem has been widely used by thestock exchanges of world. However, since the Stockholm Stock Exchange changedfrom membership tocorporation systemin1993, the global securities markets expended the most significant governance model change in the history. Now, almost all of the important stock exchanges in the workd have changed from membership to corporation system. This change is also called "demutualization".This dissertation is an attempt to promote the research at the base of existing research on the point of view of governance cost. This dissertation argues that the Stock Exchanges’ change from membership to company system is a governance system model change in the case of significant changes of external conditions,the differences of the membership system Stock Exchangesbetween the other non-profit organizations andeffects of the market participants and other stakeholders. This governance system changes reduce the governance cost of the market participants and stakeholders, make a Pareto improvement and the formation of a new Pareto optimal. So the world’s major stock exchanges willcomplete within a short period of more than20years, a thoroughly reform of the governance system model. Meanwhile,this aritcal is also argures about the governance issues and risks the Stock Exchanges maybe face after the demutualization.On this basis,this dissertation starts by from thestock exchange corporate system restructuring issues, specifically anylaze the construction of China’s securities market and improvement of its governance model. This dissertation argues that the governance environment of China’s securities market is quite different from other countries, government-led and powerful administrative control is its most prominent featureand significant issue.Other securities market participants and stakeholders(espect of Exchagnes’employees) in the face of the government-led, lack of ability and power to promote the change Stock Exchangsalso lack the to promote change, and the change can bring litte benefits tothem. The transformation of China’s securities market and the restructuring of the Stock Exchange must be carried out under the auspices of the government and the reasonable alienation of their rights (or benefits). In this trans version, a prognosis about the possible problems and risks, and a design of the related institutions must be made at firse, otherwise the changes may not work as expected results, and may even play a negative role.This dissertation uses theoretical analysis and comparative analysis in brief,and with the help of cases analysis and empirical fact,strives to build a clear, workable securities market governance mechanisms change analysis system. On the base of this, this dissertation trys to analyze the securities market’s governace model changes,and predict the governance issues and risks that may be encountered in the future of the securities market and the stock exchange.This dissertation especially analyze the problems and risks of China’s securities market reform and restructuring of the Stock Exchange may be faced in advance, and put forward a number of specific recommendations.This dissertation is a superficial attempt about the Stock Exchanges’governance mechanisms changes. I hope to be able to provide a reference for future research, lay a basis contribution for the research work, and make workable constructive comments for China’s securities markets healthy development.