Development And Regulatory Countermeasures Of China's Online Securities Trading

In recent years, the development of information technology, especially the widespread application of Internet Technology, has led to a revolution in the commercial field, of which online security transaction is on the foreground. To the whole world, online security transaction is still a newly emerging business form, which relies heavily on the environment of technology and regulation development. Nevertheless, online transaction grows quickly in the security market, and stands for the developmental orientation of the security brokerage. Therefore, Chinese security dealers should be prepared, standardizing operations in development, and making improvement while innovating. Meanwhile, online security transaction, as the most mature online financial service, needs urgent supervision. China security regulatory bodies hold a positive attitude toward this newly emerging transaction means, and pay high attention to its development. In April 14, China Security Regulation Committee (CSRC) issued a provisional regulation providing comprehensive measures to lower online transaction risks from the technical and business perspectives, and offering a guarantee in system for the development of online business. Therefore, how to effectively supervise the online security transaction, to insure its steady development and to meet the challenges from foreign competitors after China's entry into WTO, are problems that demand our imperative consideration. The thesis "Development of China's online security transaction and analysis of regulating measures" aims at offering some suggestions to security dealers and regulating authorities.This paper consists of three parts. Part I gives basic introductions to Internet, E-Commerce and online security transactions, which begins with the technical basis of dealing via Internet-the basic technical mechanism of Internet and the process of e-commerce, and then makes some fundamental analysis of the concept, essence, advantages and problems of dealing via Internet. Part II, as the main part of this paper, discusses the development of online security transactions in China. It first points out the international circumstances ofdealing via Internet, the global progress of online security dealing. Then the article continues to talk about the development course and business model of dealing via internet in our nation, scrutinizing the restrict factors, emphasizing the regulatory room and the security dealers' corresponding strategy, and making an economic analysis for security dealing via internet, then reaches the conclusion that this business form, through innovation today, will bring profits tomorrow. Finally, it gives the positive forecast.Part III is about the regulation of online security transactions. It lists the difficulties and necessities of regulation, dictates the principle and strategy of dealing via Internet, and puts forward suggestions on corresponding measures.