Chinese Securities Market Supervision Efficiency: An Empirical Test And Countermeasures

Since Chinese stock market was founded, it has played an important role in promotingindustrial restructuring, optimizing the allocation of resources and the expediting theeconomic development. However, the problems which have long appeared in the Chinesestock market made a bad effect to the development of Chinese securities market, alsohindered the growth of the national economy. There were a variety of scandals appeared inthe stock market, these events have caused a very bad effect to Chinese stock market. Inorder to satisfy the development of the society, our government gradually took appropriatemeasures to strengthen the supervision of the securities market, including the developmentof regulations, investigation of illegal behavior, but the scandals are still emerging. Theproblems of asymmetric information and responsibilities are the features of the stocktrading market, so the stock market does not have the strict supervision in case it is proneto opportunistic tendencies, moral hazard and adverse selection problems. Other countriesof the world are very strict on the regulation of stock market, but in a transition period ofdeveloping countries, in order to achieve the objectives of economic development, thecountry need to use the securities market as the main body of the capital market, so thestock market was produced under the government’s forced active arrangement. The weakfoundation, the imperfect legal system have become a prominent problem of Chinesesecurities market. Therefore, the regulation of Chinese securities market has become moreimportant.Our country is an emerging transition market, although we have created a centralizedregulatory framework, but the efficiency of supervision is relatively low. Analysis for themain reason of Chinese securities’ inefficiency and how to improve regulatory efficiencyand upgrade and research methods have theoretical and practical meanings. The purpose ofthis study is to investigate the effect of the current securities regulatory system and to findfactors restricting securities regulators and to seek effective monitoring system, So that wecan standardize the operation of regulatory agencies. Therefore, inspecting the efficiencyof securities regulatory regime not only has the forward-looking theoretical significance,but also has practical significance to guide the implementation of the securities regulation.The theme "stock market regulatory efficiency" is tightly around by full text, we drawcurrent problems of low efficiency of Chinese stock market by analytical methods and empirical analysis of game theory, and thus put forward measures to improve efficiency ofour securities regulatory measures.