Research On The Melting Mechanism Of China's Securities Market

In the United States in 1987 after the stock market crash,people realize the importance of cross market risk control,first proposed circuit breakers to maintain market stability.The fuse mechanism has been gradually mature after many adjustments.It is a securities transaction risk control mechanism which has been adopted by many national securities markets.Its purpose is to reduce the information asymmetry in the extreme circumstances and investor panic,resulting in the stock market continued to slump.For any system has its special historical background,China’s stock market experienced three fell sharply during the period from June 2015 to August,has brought huge losses to investors,but also to the Chinese stock market and even the entire financial system brings great turmoil.Under this background,our country tries to introduce fuse mechanism.However,after the implementation of the fuse mechanism,continue to touch the fuse,triggering the closure of the market,affecting the normal securities trading,the securities and Futures Commission was halted,and this also caused controversy among the parties about the fuse mechanism.After the brief implementation of the fuse mechanism in China,it has been declared suspended.Is it the problem of its own or the immature environment for implementation in China?China’s securities market in the emerging and transitional stage of development,has been filled with market manipulation,insider trading and excessive speculation,so from the securities market of China’s own needs,the need to improve the measures to stabilize the market.Circuit breakers and involved in the implementation of law,economics and other disciplines,this paper explores the connotation and function of circuit breakers,circuit breakers from the theoretical basis,law and related legal system comparison approach,further elaborates the circuit breakers for the necessity of China’s securities market,combining with the analysis of the circuit breakers,in-depth analysis of the relevant provisions of circuit breakers has been carried out in our country,points out the causes of insufficient circuit breakers failed in China and its existence,finally combined with the above analysis pointed out that China’s implementation of circuit breakers is helpful to perfect the legal system to control the risk of the securities market in China from the aspects of legal regulation.