China's Securities Market Of Small And Medium Investors' Rights Protection

Investors are the foundation of development of securities market. It is said in America, to protect minority investors is to protect Wall Street. While developed countries spare no effort in protecting minority investors in order to build mature capital markets, it is more important for a new securities market like us, which is characterized by minority investors, to strive for their participation and support. However, for a long time, our minor investors' legitimate rights and interests are violated for many reasons and their confidence is so undermined, which will ultimately obstruct the development of our securities market.Literature on investors protection always tend to discuss how to perfect corporation governance, so that the investor's rights as a shareholder can be protected, ignoring the investor's rights and interests protection that he/she should own as a participator of securities market. However, the fact in our country is, under the background of dual scarcity in market system and supervision, minor investors legitimate rights and interests as market participators are not well protected. As a new security market, we still have a long way to go to form a market system that is characterized by publicity, impartiality and justness and could give enough protection to investors. On knowing this, this paper puts the research emphasis on protection of minor investors' rights and interests as market participators and discusses minor investors' rights and interests protection from the perspective of market supervision, it also works on how to improve market supervision and build an effective market system.This paper applies a combinative method of qualitative analysis and quantitative analysis in historical and logistic sequence.First,it gives clear explanation to some related concepts about minor investors protection and sums up domestic and foreign literature, thus illuminates the scope of research object and basis.Then,it demonstrates the fact by showing its specific appearance and quantitative description. After this is the main part of the paper, it discusses the mechanism and reason that why minor investors' rights and interests are easily violated from two aspects: system deformity and supervision infirmness. For the problem of securities market supervision, it applies Information Economics and Game Theory to search for the deep reason of endless crimes which violate minor investors' rights from three layers of supervision practice. It also comparatively studies investors protection institution and practice in developed countries, expecting to be enlightened. Finally, based on former research, it comes up with some suggestions and countermeasures on protecting minority investors' rights and interests from the angle of strengthening market supervision.