.contact us |.about us

Highlights ... ...
Search:
    Advertisement
Securities Law pondered
( 2003-07-07 10:24) (China Daily HK Edition)

China's small stock investors would be the biggest winners if the Securities Law is revised in the way they are predicting.

The National People's Congress, China's legislature, has said it is in the process of revising the four-year-old law. Financial and legal experts have said the current law lacks many necessary provisions and contains many vague and impractical clauses.

Experts and individual investors said that high on the agenda of revisions should be more specific and straightforward provisions whereby investors could sue fraudulent listed companies for compensation.

The current Securities Law pays scant attention to the civil liabilities of listed companies that cheat investors. It contains only a brief reference to civil compensation payable to shareholders in cases of fraud in information disclosure.

The law makes no stipulation regarding the consequences of other irregularities committed by cheating listed firms, such as insider trading and price manipulation. The law says only that such activities could lead to criminal charges.

Li Mingliang, a law professor with the Shanghai Jiaotong University, said: "The protection of investors should be the prime goal of a securities law but the existing Securities Law is too vague on this and makes it very difficult to protect small investors in a real sense."

In January, the Supreme People's Court issued a judicial interpretation about civil compensation cases involving fraudulent information disclosure in the securities market.

The document clarified for the first time ways to define losses suffered by stockholders in the business that released fake information and how to calculate the related civil compensation.

Experts said that they believe the revised Securities Law should take a further step in making clear that other irregularities that hurt investors would also result in the companies having to pay civil compensation.

There are also aspects that experts believe need to be deleted or modified.

The existing Securities Law was promulgated at a time when the deepening Asian financial crisis made Chinese officials acutely aware of the devastating effects of financial risks. As a result, many clauses in the law stipulate stringent restrictions on certain aspects of companies' conduct. But many of these clauses are impractical, said Xu Hongyuan, an economist with the State Information Centre.

The law says "speculation in stocks" by State-owned enterprises is forbidden. It also forbids banks' funds from entering the stock market in an "illegal way" in stock investment.

However, in practice, it is very difficult to define "speculation in stocks" and bank funds' "illegal" involvement in stock investment, Xu said.

The Securities Law was promulgated in 1999. Legal experts said much of the law is now obsolete because myriad changes have occurred in the country's securities market and the corporate world in the past four years.

But the consensus of the experts is that any revision at this time should not bring about a sweeping overhaul because the market and the economy as a whole are still in a process of rapid change. So the correct approach should be to make any necessary changes only to the existing clauses and add necessary new provisions, they said.

Another thing that needs to be considered when revising the Securities Law is consistency with other financial legislation, much of which is also being revised, said Liu Junhai, a commercial law researcher with the Chinese Academy of Social Sciences.

At least three other laws that are closely related to the Securities Law are also being revised - the Corporation Law, Commercial Banking Law and Bankruptcy Law. The first draft of the new Securities Investment Fund Law has just been finished.

Experts said it is very important to make these laws consistent with each other. Otherwise, it will be confusing to all the parties involved - companies, investors and judges.

   
Close  
  Go to Another Section  
     
 
 
     
  Article Tools  
     
  E-Mail This Article
Print Friendly Format
 
     
   
        .contact us |.about us
  Copyright By chinadaily.com.cn. All rights reserved  
主站蜘蛛池模板: 午夜亚洲av永久无码精品| 国产精品美女视视频专区| 另类视频第一页| 欧美性bbwbbw| 国产香蕉国产精品偷在线| 久久亚洲精品无码aⅴ大香| 男男GayGays熟睡入侵视频| 国产福利永久在线视频无毒不卡| 中国免费一级片| 欧美日韩一区二区三区自拍| 全免费a级毛片免费**视频| 老司机久久影院| 成+人+黄+色+免费观看| 久久精品无码一区二区三区免费 | 东北女人毛多水多牲交视频| 日本精品少妇一区二区三区| 亚洲AV无码无在线观看红杏| 欧美日韩一区二区综合 | 天天躁天天弄天天爱| 久久这里只精品| 欧美成人伊人十综合色| 又黄又爽又色又刺激的视频| 调教视频在线观看| 成人H动漫精品一区二区| 久久久精品免费| 日韩综合无码一区二区| 亚洲乱码无码永久不卡在线 | aa级女人大片喷水视频免费| 小爱同学下载二三三乐园| 中文字幕成人免费视频| 欧美亚洲第一页| 免费无码成人片| 韩国伦理片久久电影网| 国产美女口爆吞精普通话| WWW国产精品内射熟女| 女人张腿让男人捅| 一区二区3区免费视频| 日本漫画工囗全彩内番漫画狂三| 亚洲欧洲自拍拍偷午夜色无码| 狂野小农民在线播放观看| 免费传媒网站免费|