China Government Securities Market Supervision Behavior Problems

The securities market, in essence, is market information, information transmission, and the distribution of securities based on relevant information of the market behavior. In the 1980s, with the deepening of reform and opening up and development of socialist market economy, the gradual establishment of the securities market of our country was built from scratch. The securities market, to promote the establishment and development of the market economy system reform, required profound changes of the national economy and appearance. However, with the establishment of the securities market, all kinds of illegal and criminal activities involving securities market information ensued.Securities market information monitoring is the core of securities market supervision. In our country, there have been many major cases of monitoring the securities regulatory market information, from the beginning of establishment of "GuanJinSheng event" in 2007, the "eldest brother 777", and the famous 2008 "WangJianZhong" black market where the China securities regulatory commission fined them a $250 million penalty. The typical features of these events are complicated, the social effect of the amount is huge, and understanding them involves extensive researcher. As each case was exposed, through deeper investigation, we found that they were not isolated cases but were typical of many. Such practices in our stock market are still widespread. This will force us to review our supervision system.At present, China's system is centralized and provides unified supervision system of the negotiable securities market. So-called unification directives were set by the central government as authorized by the China securities regulatory commission. On their behalf, the Chinese securities market supervision exercised power as the China Securities Regulatory Commission unified regulatory authority over institutions. This pattern is theoretically a better model but, in practice, the securities regulators, the functions of the government, and politics are all involved. The CSRC should be solely a self-regulatory organization involving management and administration, independent of other factors. The CSRC, in handling securities market information, illegal activities, the tendency of hosting, actually has neglected the judicial principal of power to punish crime. This paper, in reviewing the history of the above problems, explains how the securities market of our country has dealt with the serious issue of illegal information and analyzes the phenomenon. In the securities market, aspects of government supervision are a significant factor.Based on China securities market information under the shortcomings of the supervision and problems of classification, it summarizes the illegal types of securities, and examines the ways of treatment and their disadvantages. Finally, it summarizes our country's securities market information system engineering. It proposes the correct orientation, rationalizes the regulators'functions in an ideal legal system, strengthens the administrative law enforcement ability, enlarges the self-discipline of the organization, improves the corporate governance structure, strengthens education, credits honesty, and creates a suitable social environment.