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Rule of law is the inherent demand for playing the role of capital market, the inevitable choice for achieving the standardized operation of capital market, the crucial foundation for deepening the reform and innovation of capital market, the bottom line for preventing, managing and dispelling systematic risks, and the strong guarantee for establishing the credibility of capital market supervision, Chairman Shang Fulin of the China Securities Regulatory Commission (CSRC) said at the 1st "SSE Legal Forum" with the theme of "Rule of Law: Legal System Construction of China's Capital Market in Retrospect and Prospect in Celebration of 20th Anniversary", hosted by the Shanghai Stock Exchange (SSE) under the auspices of the Peking University Law School, Renmin University of China Law School and Economic Law Institute of East China University of Political Science and Law, in the celebration of the 20th founding anniversary of China's capital market in Beijing on December 4. CSRC Chairman Shang Fulin, Vice President Xi Xiaoming of the Supreme People's Court of China, Deputy Director An Jian of the State Council Legislative Affairs Office, and SSE Governor Geng Liang delivered speeches at the forum, attended by nearly 100 experts and scholars from legislative, judicial and law enforcement departments and research institutions of higher education as well as market professionals.
CSRC Chairman Shang Fulin noted at the forum that China's capital market has made remarkable achievements in its growth in the past two decades, and the continuous perfection of legal systems secured the fulfillment of capital market's functions and roles. First, listed companies' core competitiveness has been enhanced effectively with increasing improvement of corporate legal system. Second, the continuous improvement of merger and acquisition legal system has greatly increased the quality and efficiency of resource allocation. Third, the enhancement of securities investment fund legal system has fundamentally changed the structure of capital market investors. Fourth, the progress in risk prevention and disposal legal system has guaranteed the safe and stable operation of capital market. Fifth, the improved multi-layer capital market legal system has well met the market demand for diversified investment and financing. Sixth, the perfected issuing and financing legal system has further strengthened the market-oriented price formation and constraint system. Seventh, the constant efforts in improving the supervision and law enforcement system have maintained the "open, fair and just" market order. He pointed out that rule of law is the inherent demand for playing the role of capital market, the inevitable choice for achieving the standardized operation of capital market, the crucial foundation for deepening the reform and innovation of capital market, the bottom line for preventing, managing and dispelling systematic risks, and the strong guarantee for establishing the credibility of capital market supervision. At last, he emphasized the work that needs to be done well in the legal system construction of capital market at present and in future: speeding up the construction of multi-layer capital market legal system; promoting the amendment and perfection of fund legal system; pressing on with the formulation and improvement of futures trading legal system; improving listed company supervision legal system; and propelling the establishment of special capital market supervision and law enforcement system.
After reviewing the judicial guarantee and guidance for the innovative development of securities market made by the people's courts in the past two decades' civil, administrative and criminal trials, Vice President Xi Xiaoming of the Supreme People's Court of China said that with the rapid growth of China's capital market, accelerating the improvement of investor judicial protection mechanism and the investigation into the civil compensation liability of those on securities market infringing on investors' rights and interests have turned out to be the urgent issues of capital market that need to be solved. The Supreme People's Court will contribute to the healthy growth of China's capital market by perfecting the judicial systems related to capital market and regulating the behaviors of all market participants through judicial trials in accordance with the laws including the "Securities Law", the "Company Law", the "Property Law" and the "Tort Liability Law".
Deputy Director An Jian of the State Council Legislative Affairs Office said in his speech that due to its characteristics, securities market needs sound rules, appropriate risk prevention mechanisms and strict supervision, while all of those rely on rule of law. After one score years' growth, China's capital market already has a relatively complete securities legal system, with the "Securities Law", the "Securities Investment Fund Law", the "Company Law" and other relevant regulations as the main body and the administrative regulations, departmental rules and judicial interpretations as the supporting ones, thus providing a basic system guarantee for the standardized and orderly development of the market. However, more work needs to be done in information disclosure, market supervision and investor relief, and the legislative, administrative and judicial departments still face a tough task of system construction.
SSE Governor Geng Liang noted in his speech that rule of law has always been a strong guarantee for the SSE market's development in the past two decades. Thanks to the promotion of capital market legal system construction, the SSE's legal environment is improving with an increasingly complete legal system for market growth, a better judicial environment for the SSE's self-regulatory supervision and a gradually perfect system of self-regulatory supervision rules. Standing on a new historical starting point, the SSE market, stepping towards a more mature market suitable for China's actual conditions, will require a more favorable legal environment. Thus, the SSE will fulfill its self-regulatory supervision function in compliance with laws and regulations to consistently build a self-regulatory supervision mechanism fit for the market growth and innovation.
Professor Wu Zhipan, Chairman of Economic Law Institute of the China Law Society and Executive Vice President of Peking University, Professor Wang Liming, Chairman of Civil Law Institute of the China Law Society and Vice President of Renmin University of China, Professor Wang Baoshu, Chairman of Commercial Law Institute of the China Law Society, Professor Guo Feng, Chairman of Securities Law Institute of the China Law Society, Professor Gu Gongyun, Vice President of East China University of Political Science and Law, and SSE Vice President Xu Ming gave keynote speeches on capital market development and legal system construction process evaluation, coordination between the "Property Law" and the securities legal system, capital market's goal of legal system construction in future, capital market transparency and its need for legal system, legal regulation of insider dealing, and further amendment and perfection of the "Securities Law", respectively.
SSE President Zhang Yujun said at the forum that in the future development of capital market, the legal system construction will be expected to act as a major drive for market growth, a basic means to solve all kinds of problems and risks in market development, a fundamental measure to ensure safe market operation and improve market operation quality, a basic path to strengthening the protection of investors' rights and interests, and a long-term system to enhance Chinese capital market's core competitiveness.
