Research On Supervision Cooperation Of Mainland Companies Listed In Hongkong

After joining the WTO, China has made remarkable achievements in the securityand financial work, so that China’s securities industry occupies a very largeproportion in the national economy. At the same time, our country is activelypromoting the mainland enterprises to list overseas; many mainland enterprises havelisted in Hong Kong. As an international financial center, under the influence of suchsecurities system, Hong Kong has a relatively effective, mature securities market,which has attracted attention of the mainland enterprises that are going to list overseas.However, in recent years, many mainland enterprises which have been listed in HongKong have some illegal behaviors. The reasons are as follows: Firstly, someenterprises have weak self-discipline conscience. Secondly, individual or family has astrong sense of control. In addition, the management between subsidiaries and parentcompanies is in confusion, the asset appraisal institutions and accounting and auditingsystem are imperfect. These factors not only greatly affect the mainland enterprises’ability of sustainable financing in the stock market of Hong Kong, but also discouragethe enthusiasm of the investors.The above problems in current situation of securities regulation cooperationreflect a big gap between the mainland and Hong Kong, which put higherrequirements on defining the responsibility of supervision between the mainland andHong Kong respectively, refining the measures in the practice of securities regulationand achieving mutually beneficial cooperation. Therefore, it is necessary for thesecurities regulator to further the corporation. Although the reform of the securitiesregulation has brought a further development and improvement to the system, itseriously hindered the corporation of securities regulation. This is mainly manifestedthat Hong Kong stock exchange dual identity of decision-making is to pursue for itsown interests and try to increase the number of the mainland companies listed inHong Kong and the amount of financing. Thus resulting to that some low quality ofmainland enterprises can also become a member of the Hong Kong securities marketlisting Corporation. Besides, the tough measures of Hong Kong stock exchange arelacking in execution and the listing approval system has a big leakage.Therefore, in the situation that a large number of mainland enterprises listed onthe Hong Kong stock market, drawing the advanced experience from foreign securities regulatory cooperation has become the focus to perfect securities regulationbetween mainland and Hong Kong. These outstanding international experiencesinclude the legislative regulation of unilateral, the bilateral memorandum ofunderstanding between the United States and Canada, the enlightenment frominformation disclosure system, the interregional judicial assistance in criminal cases,the international regulatory cooperation in the EU, as well as the securities and thelegal documents of Exchange Commission. This thesis, drawing lessons from thedomestic and international securities regulatory cooperation, emphasizes the divisionand corporation of the two securities regulatory authorities as well as the respectiveresponsibility. Also, the thesis explores how to strengthen the securities supervisionsystem construction and supervision cooperation, fill the blank of mainlandcompanies listed in Hong Kong regulatory cooperation, and improve the supervisioncooperation between mainland companies listed in Hong Kong.