On Self-Regulation Of Securities Association

China's stock market boomed in 2007 but shows a striking fluctuation in 2008,which explains the fact that in the process of gradual deepening of China's capital market reform,the market function is working step by step and playing a more and more important role in the development of national economy,whereas the external environment and inner mechanism of the operation of securities market are not that perfect.Therefore,the risks of the securities market ought to be further watched out and the regulation of securities market should be strengthened.With the transformation of the "government supervising the market" theory,the self-regulation of the securities market is playing an increasing important role.In terms of securities industry,the China Securities Regulatory Commission began to loosen the supervision and restraint of the securities market gradually and transfer its power to self-regulatory organizations to exercise.Being the self-regulatory organization in securities industry,Securities Association of China enjoys less power of self-regulation than stock exchange,whose basic role of self-regulating the securities market has not effectively functioned.China's capital market is experiencing its important period of deepening reform,when Securities Association of China,also in its new phase of reform and development,just held its new membership meeting in the beginning of 2007 and established its news organizational and leadership structure.As a result,based on the facts and the theories aforementioned and factual situation of self-regulation by securities association both at home and abroad,this paper examines the deficiencies of self-regulation by securities association in China and proposes suggestions regarding its reform and perfection.This dissertation is divided into four chapters. In chapter 1 the author analyzes the basic theories about the self-regulation of securities industry.Firstly the necessity of the self-regulation is introduced from the perspective of economic analysis (when dealing with the securities business) and jurisprudence analysis (when dealing with the civil society and moral restraint).Next follow the methods of self-regulation in securities industry which include the securities association,stock exchange and securities dealer.Thirdly,the necessity of self-regulation by securities association is analyzed.By making a comparison with other modes of securities regulation and an analysis of the characteristics of the self-regulation by securities association, the irreplaceability of the self-regulation by securities association will be explained.In chapter 2 the history of existence and development of securities association is introduced.After an introduction of the evolution of the securities association in China,USA and Japan,a comparison between abroad and China is made to indicate the room to be improved in the self-regulation by Securities Association of China.Chapter 3 will discuss the current situation and deficiencies of self-regulation by Securities Association of China.When analyzing the status quo of self-regulation,the author discusses the duties,members, organizational structure of the association and the regulation of securities staff.When dealing with the deficiency of theself-regulation by association, the lack of autonomy and OTC market will be examined.Chapter 4 will discuss the reform and perfection of the self-regulation by Securities Association of China.The author examines the perfection of the autonomy mechanism in terms of legislation,reducing administrative intervention,establishment of effective award and punishment mechanism as well as dispute settlement mechanism.Having reference to the management mechanism of oversea OTC market,the author makes an analysis of the establishment of management mechanism of OTC market in terms of legislation,management system,OTC market and establishment of supporting systems.After that,how to establish the coordination systems between securities association and other regulators as well as participants will be dealt with in terms of the relationship between China's Securities Regulatory Commission,stock exchange,local securities association and securities service institutions.