Corporatization Reform Of China’s Stock Exchange And Competition Law Research

With China’s rapid economic development, China’s financial market is alsochanging rapidly and showing the unique vitality. With the gradual deepening of SOEreform in recent years, a large number of small and medium-sized enterprises, privatecompanies, the number of IPO shares and the amount of funds rise at a explosivegrowth rate;"listed" is becoming one of the most popular words. As the basicplatform of the China Securities and Exchange-the Shanghai and Shenzhen StockExchange have played a pivotal role in fund raising and capital flows. But we also seethat China stock exchanges’ legal nature of the governance model exist a hugemissing, leading to the Stock Exchange is more monopoly than the competition.Relevant legal gap, the exchange can not fulfill the relevant functions, a large numberof quality companies have chosen overseas financial market, making our country at adisadvantage position in the international financial market. The development andlegal system construction of the International Securities Exchange may bring someinspiration for progress and improvement of China’s financial laws.In China, theorists and regulators actually have awarded of the problems ofChina’s stock exchanges, various disadvantages, and also have analysis and researchthe reform of the exchange not only in economic area but also legal aspect. However,these studies were more concentrated on the analysis of exchange disadvantages reason. The future development of China’s stock exchanges, the functions ofpositioning, how to reflect on the laws or regulations, corporate reform and whetherthe Antimonopoly Law conflict and other issues are rarely involved. Therefore, as astarting point, this article combine with the Securities Act and company law, made thepossibility of analysis on the status of the Chinese stock exchange, combine withWestern economics, antitrust laws and related laws to make a deep analysis of therelationship between the competition and monopoly.This article is divided into four chapters. The first chapter is the historicalbackground for the Stock Exchange, the governance model as well as an overview ofdevelopment trends. A brief analysis of the World Stock Exchange background,history, a brief for the world’s two major exchanges, governance model-membershipStock Exchange, the system of stock exchanges are discussed. And according to theinternational experience and development for exchange, I make the analysis andreasonable prediction.Chapter two. Stock exchange of corporate system should be the direction ofreform of China’s stock exchanges. In this chapter, the two major modes ofgovernance in the world, the corporate system and membership were made of a deepanalysis. For two models, the voting mechanism, incentive mechanism, as well asinvestment and financing are compared in characteristics. Then the analysis ofhistorical background of China’s stock exchange and development are made.Meantime, the deficiencies of China’s stock exchanges are pointed out in legal status,property ownership, independence of Exchange, the functions of positioning,international competitiveness and so on. Finally, according to the practical experienceand trends from abroad, it’s important to find a reasonable basis for the corporatesystem should be the direction of reform of China’s Exchange.The third chapter is a lot of legal problems and solutions faced by the StockExchange after the company reform. This chapter first discusses what legal shouldprepare after the corporatization of stock exchanges in China, including how the"Securities Act" changes as well as other relevant laws how to adjust. Then make ananalysis of the Stock Exchange of the shares, how to rationalize the allocation of property rights relations, and how to optimize the stock exchange governancestructure in corporate system. Finally, the market regulatory authority how to organizethe company system transactions after the reform will mainly from the self-regulationof the Stock Exchange and China Securities Regulatory Commission. Governmentcontrol should also be studied and explored the relationship between self-regulationand government control.Chapter four. Corporatization Reform of china’s stock exchange should face themonopoly of legal issues and conflict with the antitrust laws. This chapter begins fromthe perspective of western economics-economies of scale and network externalitiesto analyze the stock exchange in the market conditions, and also tend to analyze themonopoly of its rationality. The analysis of the situation of monopoly position in thestock exchange after the company reform as well as the Stock Exchange corporatereform to retain market dominant position in conflict with the Antimonopoly Law aremade. Also analyze the new thinking of stock exchange after corporatization reform.