The Chinese Management Of Securities Market Could Be Used As A Modal To The Lao PDR's

The securities regulatory system is a very important legislation for the securities market. it refers to the body that is authorized to perform functions such as creating and reviewing securities legislation, regulating the trading, issuing and settlement of stocks, fixed income securities brokers, and overseeing the issuance of overseas company listings and offerings. In order to establish and implement the market smoothly, it is required the legislation and the control of the government as well as the control of the securities market itself. Every country in the world has the difference of historical background, for instance, culture, language, custom and tradition, especially, the government system. Therefore, each country has a difference legislation on securities market. China is one of the leading countries that succeeded in securities market in the period of economic transition, this sector is one of successful indicators of Chinese economy that Lao PDR could consider to take as a lesson for its securities market establishment.Even though, the securities market of China started later than Western countries'and it is still young, the prospect for growth cannot be overstated. The stock market management of the Republic of China is always developed simultaneously with securities market itself. In the past (1981-1992) the stock market system was in the form of the decentralized management, (1992-1997) was in the form of the partial management, (1997) to present had been being in the form of the centralized management; these 3 forms had been continued developing the management system. The securities market management system of the Republic of China had been using a completed measure to manage the centralized market in order to protect the risk of the securities companies, to upgrade the standard of the listing companies, and to protect the benefits of investors. This could completely address the issue related to the structure of share division which had been a trouble for long time. As a consequence; this purposes to develop the securities market mechanism to become an efficient mechanism and a completed law system at present, it will help creating trust in the market.Although, the Republic of China has a completed stock market development, the securities market management has been running mainly with the intervention of the government which it should not be. Therefore, it lacks of the securities market-oriented regulation, the independence and the self-supervision of the authorized securities agencies. It should increase capacities in collaboration on securities market management of the relevant Stake-holders in order to play a full role of its own institute while the securities market management institute of the Republic China is trying to set out this direction in the future.The securities market establishment of Lao PDR will be set up on the economic based, shifting planned economy to market economy which looks similar to Republic of China's, which China established the market based on politic, sociality, economy, finance, industry situation and etc. The securities market establishment of Lao PDR should select the methodology and system that appropriate to the situation and plan of the market development.Hence, the experiences of China is a good lesson to consider and follow in order to set up legislation on securities market management, increase the supervision of government, disclose the useful information.