Causes of small and medium investors in China's securities market law to protect the status quo and

[Abstract] China's securities market is less than 20 years, but in the last ten years in the development and construction process, the securities market has undergone enormous changes in China's emerging and transitional stock market investors protection of the rights related to the confidence of investors in the securities market, related to the healthy development of the entire stock market. Only by establishing a sound legal environment, and strengthen the protection of the interests of investors, to reduce adverse selection and moral hazard, in order to promote long-term healthy development of securities market. Therefore, it can be said that the soundness of the legal system, especially the legal system of investor protection aspects of the soundness of a national securities market stability and its ability to remain an important foundation for prosperity.

[Paper Keywords] small investors, securities market; legal protection


A, the historical evolution of China's small and medium investors legal protection and effectiveness

The foreign-related legal and financial documents have emphasized the importance of the legal protection of investors for the development of the stock market, LLSV (2000 Empirical studies show that the national financial system such as capital market breadth and depth, the frequency of the issuance of new securities, corporate governance structure and dividend policy, the efficiency of capital allocation, differences in national legal systems of protection for outside investors to explain to strengthen the legal protection of investors to maintain the interests of investors of securities market, enhance the ability of the financing of enterprises, contribute to the development of financial markets and the macro level to promote the development of the national economy of investor protection laws and regulations in China has been constantly improving and perfecting the intensity is gradually strengthened, especially after 2000, a large number of relevant laws and regulations intensive introduction, the degree of attention to investor protection reached an unprecedented height.

The small investors are important participants in China's securities market and protection of the interests of small investors a direct impact on the development of the securities market as a whole. In fact, the national securities market regulations and the regulatory regime is to protect investors' interests as the core, China >> << Securities Act come into effect on January 1, 2006, its main spirit of the law on the securities market to regulate, in order to reduce the damage to the interests of investors, the investment confidence of small investors, to promote the securities market sequence and healthy development. development experience from the legal protection of small and medium investors in China, marked by the implementation of the new >> << Company Law and Securities Law >>, respectively, has gone through the initial stage of the development stage, the perfect stage mature stage of the primary stage of the legal protection of small investors (before July 1994, the stage of development of small and medium investors legal protection (July 1994 - 1998 July, the legal protection of small investors relatively complete phase (July 1999 - In December 2005, the mature stage of the legal protection of small investors (in January 2006 after four stages. different stages of development, legal and market environment of the small investors are not the same, small and medium investors legal protection provisions the role of legal protection and content, with a stage and dynamic development.

Presents the trend of a strengthening and a gradual improvement of our country on the legal protection of small and medium investors, continuous disclosure requirements details and improve, as well as ever-stricter approval requirements with an independent, making the legal protection of small and medium investors to strengthening and increasing the confidence of small investors on the stock market investments, dependence on the law also gradually increase the legal protection of the interests of investors from the humble gradually improved, and now having effect: (1 securities legislators and securities regulatory management authorities have been fully aware of: In China's capital market is still emerging and transitional stage, effectively safeguarding the legitimate rights and interests of investors to the healthy development of China's securities market, if the legitimate rights and interests of securities investors, lack of attention and protection. China's securities market can not be health development, (2 terms of investor protection legislation, despite the current special legislation not much, but all of our securities legislation pursues the purpose of protecting investors, and focus on to establish the necessary legal the principle of a clear legal relationship, the initial formation of investor protection explained by national laws (the Securities Law, Company Law, Litigation and related judicial and administrative regulations, departmental rules and regulations, and market business rules at different levels of legal norms constitute the system of norms , and the system still further improve the process, (3 securities market illegal violations are under investigation and should be punished (4 with the implementation of the Companies Act >> and << Securities Act of the new << >> so that the majority of investors see hope, willing and dare to make their voices heard, and there are specific measures, rules and provisions to protect the investors have the right to speak.

Second, the reasons for problems in the legal protection of the interests of investors

Investors' rights protection in China is in question because:

A legal protection of investor interest in the phenomenon of the law is difficult to depend on.
China's relevant laws and regulations of the Securities Act >> and << Company Law >> clear that those responsible for violating the terms and conditions must therefore be liable for compensation for losses caused by securities investors, the defects of these provisions is to sue The legal basis for the scope of the relevant provisions of the very narrow litigation (in practice, courts rarely accepted to shareholders filed under these provisions if the court expressly provided temporarily will not be accepted because of insider trading and price manipulation caused civil disputes, China < <Company Law >> and << Securities Act enacted so far, very few such cases and when the illegal behavior of listed companies to cause harm to the interests of minority shareholders, minority shareholders through legal channels to protect their rights is extremely difficult Links in the free paper download center http://eng.hi138.com

the Court of justice and law enforcement personnel is not high quality, low level of law enforcement

The stock market is high-risk markets, systemic risk, systemic risk, credit risk securities investors suffered huge losses. Securities market is also highly professional market, especially some new products, new trading mechanism participants' knowledge, skill requirements, the legal relationship between the securities involved in the case, expertise is more complex, the judges of our country is a general lack of expertise in securities cases, it is difficult to hear the securities offenses and disputes in our country, due to reasons of social and political pressure, courts are often reluctant to accepted minority shareholders against the controlling shareholder of listed companies infringement proceedings, even if accepted, the law enforcement efficiency is very low due to market conditions and legal conditions do not yet have the people's court in the past 11 years Securities civil compensation, insider trading, market manipulation, misrepresentation and other violations caused by disputes accepted not even accepted into the entity management.

3 Civil Liability for the implementation mechanism is difficult to play a role, leading to legal relief is difficult to achieve

Legal protection of the rights of investors to a certain extent there is such a problem: when the securities investors' rights have been violated, although the law investors in the loss to exercise the right to appeal, but the system and principles of the Securities Act, the lack of maneuverability legal provisions of the Securities Investor which rights when these rights have been violated through relief channels to investigate the infringer's responsibility can not be achieved, the meaning of the provisions of these rights will cease to exist. investors that have occurred in the event of damage, such as red events, the homologation stock manipulation case, the Guangxia fraud case, investors are facing a wrongful act in the stock market have suffered damage, the interests of its victims can not get full relief, can not petition the court to receive compensation, then Securities Act in a fair, open and the principles of justice can not be achieved. our country for this type of civil dispute, the Court will not be accepted by the insider trading or others manipulating the securities price behavior and suffered the loss of cases, in fact, resulted in such rights of investors in securities simply can not be achieved.

(4) the legal protection of the rights of investors leaving investors damaged light China principle reflects the heavy line (sentence)

Consistently adhered to the principles of heavy administrative responsibility and criminal liability, light civil liability legal practice, which is particularly evident in the << Securities Act >> prior to the amendment a total of 36. << Securities Act of >> the pre-amended Chapter XI Legal Liabilities which relates to the parties concerned should bear administrative responsibility or criminal liability 34, of which only three related to civil liability, >> << revised Securities Law has been improved to the Commission announced punishment the Guangxia case, for example, the SFC punishment: the the Guangxia punishable by a fine of $ 600,000, and ordered to correct; view of the Guangxia the part of the responsible persons have been transferred to judicial organs be held criminally responsible, to be the judiciary identify the case, then be responsible for the Guangxia administrative penalties. As of today, and there is no corresponding announcement of the civil compensation of the judiciary, offenders are mostly administrative penalties and criminal penalties, civil remedies, investors in the interests of civil compensation should have been infringed can not get this first meet prior to the compensation of the external interests of investors, administrative penalties and criminal penalties does not meet the "Securities Act >> protection of investors, the primary spirit.

Investors' awareness of rights, the interests of small and medium investors in securities often victimized

The Companies Law of the new << >> implementation, strengthen the protection of small investors interests, such as clear to shareholders on the company's right to know, the right to request held a shareholders' meeting, convening power and presided over the right, the company fought to a stalemate. the dissolution of the company's claims, etc., but these rights are only a right on paper, only the majority of investors actively advocate, will it be possible rights on paper into reality right in our country, should be investigated for liability company and responsibilities of personnel is difficult, the high cost and poor results, especially the part of the securities investors did not know how to pursue liability companies and individuals who are responsible, do not even know they have the right to pursue liability companies and individuals who are responsible, when investors' rights have been violated, their bad luck.

Although our established securities market, in less than 20 years, also tend to improve its function, but there are many flaws and shortcomings in the development process of China's securities market. Establish and improve the well-developed securities markets still have a long way to to go. Share Free paper Download Center http://eng.hi138.com

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