Security Market and Law

Author: Wu Zhipan, Editor-in-Chief
Publisher:
Publish Date: 2000-05-01
Features: The importance of legal system construction for the securities market is well-known. When I entered the securities industry, my initial work involved participating in the formulation of securities regulations. I remember that during the drafting and revision of early regulations such as the "Interim Regulations on the Issuance and Trading of Stocks," several provisions were controversial. During discussions, people often cited "international practice" to support their arguments. Upon listening to various viewpoints, I discovered that the same issue could be supported by different international practices. Upon closer inquiry, I realized that a significant portion of what was referred to as "international practice" was actually "national practice"—specifically, U.S. practice, Japanese practice, and British practice. This taught me a lesson: while adhering to general principles, the economic, legal, and social conditions of each country are unique, and their securities regulations must adapt to and reflect these specificities to maintain the healthy development of the securities market. When China formulates securities regulations, it must combine a focus on domestic realities with the full of international experience. It should neither blindly copy nor develop in isolation—put simply, it must be pragmatic.