Gui Minjie: Shanghai Stock Exchange Committed To Optimizing Legal Environment Of Capital Market

"Currently and for some time in the future, the revision and formulation of the three laws for the capital market, namely, the 'Securities Law', the 'Securities Investment Fund Law' and the 'Futures Law', are to make the focus of the concerns of the market participants and the legislatures", said Governor Gui Minjie of the Shanghai Stock Exchange (SSE) at the 4th Annual Meeting of the Special Committee of Financial Trial Theory under the China Trial Theory Research Society also the Seminar of "Rules and Systems of the Financial Market in Innovation and Transformation" held yesterday. He also said that as the legal system of the capital market is of great importance to the innovation and development of the market, the SSE will make further contributions to the optimization of the legal environment of the capital market.         

Legal Construction Boosting Sound Market Development

Gui pointed out that for more than 2 decades since China's capital market was established, along with the foundation, construction and development of the capital market, significant advancement and remarkable progress have been made in the legal construction of the market. As of now, a set of comprehensive, complete and systematic market rules have been formed with the self-discipline rules of the market as the foundation, the laws, as well as administrative regulations and rules as the main part, and the judicial interpretations and judicial policies as supplements. Since the equity division reform, China's capital market has achieved significant development and transformational changes, the scale and influence of the market have expanded rapidly, the market functions have been remarkably improved, and the capacity and role of the market in serving the economy and the society have been substantially enhanced. During the process, the synchronized development of China's capital market and the relevant legal construction has made great contributions to the growth of the capital market.

With the economic restructuring and adjustment in China, the reform and innovation of the capital market and the real economy have posed higher demands for the capital market, while the current system of market rules is in the face of new situations and challenges. Therefore, it has been an important and urgent task currently to push forward the institution, revision and abolishment of laws as well as adjust and improve the market legislation in a systematic way.

Increasingly Ripe Opportunities and Conditions for Laws Revision

"Specifically, it has been many years since the Securities Law and the Securities Investment Fund Law, the core of the system of the capital market rules, were revised or instituted, the market backgrounds and foundations of the two laws are significantly different from those at the time of the making of the laws, and a series of market reforms and innovations have demanded for the systematic revision of the laws", said Gui.

Currently, the China Securities Regulatory Commission (CSRC) has organized the industry to carry out the assessment of the implementation effects of the "Securities Law". Gui said that phased research results showed that as the market participants have reached extensive consensus on the necessity and urgency for the revision of the laws, the opportunities and conditions for the revision have been increasingly ripe.

Gui indicated that the revision of the "Securities Investment Fund Law" has lasted for 2 or 3 years, while the mature draft amendment has been formed, which has gained full recognition from the legislatures and the related parties. Currently, the draft amendment is in the course of the examination of the Standing Committee of the National People's Congress.

Gui also said that after years of development, China's futures market has seen a full range of varieties of products, active trading and extensive influence, as well as a substantial increase of the position and importance in the national economy. The call for the institution of the "Futures Law" from the industry and the academia are stronger and stronger, so the legislation for the futures is increasingly urgent.

According to Gui's call, in order to further give play to the role of the capital market in serving the real economy and allocate resources through the market as much as possible, currently and for some time in the future, the revision and formulation of the above-mentioned three laws should become the focus of the market participants and the legislatures. In addition to the revision and formulation, the corresponding supportive rules and regulations should be sorted out and adjusted fully.

At present the innovation and development of China's capital market are accelerated. As an important part of the securities market, the SSE is also in the face of new opportunities and challenges. In this regard, Gui held that as an important organizer of the market, the SSE, by making full use of its advantages, could play a greater role in boosting the reform and growth of the market, as well as serving and supporting the innovation of the market.

Finally, Gui said that the SSE, as the forefront player in the capital market and the hub of the market, will facilitate the optimization of the legal environment of the capital market.