Core Curriculum Related Guidance. Securities Law

Author: Wu Hong
Publisher:
Publish Date: 2004-03-01
Features: "The Securities Law" is a fundamental legal text that we must master when studying securities law courses and applying securities law knowledge. Therefore, we need to focus on grasping the spiritual essence and basic content of "The Securities Law." "The Securities Law" highlights the spirit of regulation based on China's conditions and international practices. "The Securities Law" establishes the principles of securities market operation, including: the principles of openness, fairness, and impartiality; the principles of voluntary, compensatory, and honest credit; the principles of prohibiting fraud, insider trading, and market manipulation; the principles of separate business operations and management; the principle of centralized and unified regulation; the principle of self-regulation; and the principle of auditing, most of which are related to regulation. Some scholars have pointed out that the regulations in "The Securities Law" feature numerous administrative powers, procedural norms, qualification restrictions, mandatory norms, prohibitive provisions, and administrative penalties, making it essentially a management law. "The Securities Law" adheres to the legislative purpose of protecting the legitimate rights and interests of investors. On one hand, it strives to ensure the quality of securities issued and listed, reduce investment risks for investors, and improve investment returns. On the other hand, it strengthens prevention and crackdowns on harmful behaviors in market transactions, such as fraud, malicious speculation, and misappropriation of client trading settlement funds, and protects investors' interests by strictly defining legal responsibilities and imposing severe sanctions on violators. "The Securities Law" clarifies the legal status of various entities in the securities market. It specifies the rights, obligations, authorities, and responsibilities of securities companies, securities registration and clearing companies, stock exchanges, securities investment consulting and evaluation firms, legal and accounting service providers, securities associations, securities regulatory agencies, as well as issuers and investors, ensuring that each entity fulfills its role, exercises its authority, takes responsibility, and derives its benefits. "The Securities Law" embodies the spirit of reform and opening-up, promoting market development. The transition from a review-based system to an approval-based system for stock issuance, the shift from administrative pricing to market-based pricing for issuance, and the implementation of a more relaxed acquisition system all reflect the needs for further development in China's securities market. Additionally, the provisions in "The Securities Law" regarding the capital and funds of securities companies have, in practice, guided the restructuring and expansion of securities companies and their legal financing to enhance their competitive strength. "The Securities Law" reflects the characteristics of emerging markets and places high emphasis on risk management. When the "Securities Law" was enacted, it coincided with the Asian financial crisis, and the weak risk resilience of emerging markets provided a profound lesson. To strengthen risk awareness and effectively prevent and resolve risks, China's "Securities Law" established a series of systems, such as the separation of banking, securities, and insurance industries, the classification management of securities companies, the prohibition of credit trading, and the prohibition of securities companies mixing agency business with proprietary business. Some of these provisions are related to China's conditions and market, while others reflect transitional characteristics. This book takes "The Securities Law" as its main thread, with its chapter content as the core, forming a concise tool for studying and applying the law. Structurally, it divides the book into sections based on the chapters of "The Securities Law," providing brief summaries of the key points of each section before and after the relevant legal articles. It also lists relevant regulatory catalogs and includes full texts or excerpts of some regulations, along with selected real cases to further illustrate the key points. The selected cases are chosen with the aim of being suitable for securities law courses, striving to align with relevant regulations. Additionally, a reference list is provided at the end of the book.