China will amend its securities law in order to meet the needs of China's entry into the World Trade Organization (WTO) and facilitate the healthy development of the securities market, Chairman of the Standing Committee of the National People's Congress (NPC) Li Peng said Saturday.
Li made the remarks as he presided over a lecture on law for members of the NPC Standing Committee.
Zhou Zhengqing, former chairman of the China Securities Regulatory Commission, gave a lecture to the legislators of China Saturday afternoon.
Zhou said the current securities law is insufficient in some aspects because the provisions are too general. On the other hand, the securities law has not taken into consideration the challenges that the securities industry will face after China's WTO accession.
He pointed out that more laws and regulations have to be promulgated to supplement the securities law. These new laws and regulations will deal with such problems as insufficient corporate governance and the trade of B shares.
He said the country has to make laws to address new problems arising in the growth of China's securities market. For example, the increased trading of government-owned shares outside the official market and the lack of liquidity of these shares on the stock market should be addressed.
Zhou said the country should readjust the securities-related legal system in order to meet the challenges from international competition after WTO accession. He said that China will also consider changing the division of operations among financial institutions and introduce new varieties of investment tools such as derivatives.
(China Daily July 1, 2001)
