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Zhu, Sanzhu --- "The Role of Law and Governance in Financial Markets: The Case of the Emerging Chinese Securities Market" [2011] ELECD 1047; in Alexander, Kern; Moloney, Niamh (eds), "Law Reform and Financial Markets" (Edward Elgar Publishing, 2011)

Book Title: Law Reform and Financial Markets

Editor(s): Alexander, Kern; Moloney, Niamh

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9780857936622

Section: Chapter 5

Section Title: The Role of Law and Governance in Financial Markets: The Case of the Emerging Chinese Securities Market

Author(s): Zhu, Sanzhu

Number of pages: 50

Extract:

5. The role of law and governance in
financial markets: The case of the
emerging Chinese securities market
Sanzhu Zhu

INTRODUCTION

In March 2009, the Chinese government endorsed a plan to establish
Shanghai as an international financial centre and shipping hub by 2020,
ten years earlier than was previously planned.1 This was good news for
Shanghai where, together with numerous banks, insurance and securi-
ties establishments, China's three major securities and futures exchanges
are located: the Shanghai Stock Exchange,2 the Shanghai Futures
Exchange3 and the China Financial Futures Exchange.4 Anticipating a


1 See The Opinion of the State Council on Promoting Shanghai to Speed up the

Development of Modern Services Industry and Advanced Manufacture Industry
and Construction of an International Financial Centre and an International
Shipping Centre (Guowuyuan Guanyu Tuijin Shanghai Jiakuai Fazhan Xiandai
Fuwuye and Xianjin Zhizhaoye Jianshe Guoji Jinrong Zhongxin he Guoji
Hangyun Zhongxin de Yijian) (Guofa [2009] No. 19), issued by the State Council
on 14 April 2009.
2 The Shanghai Stock Exchange was established on 26 November, 1990 and

the trading started on 19 December 1990. By the end of 2007, there were 860 listed
companies.
3 The Shanghai Futures Exchange was established in 1998 by merging the

Shanghai Commodity Exchange, the Shanghai Metal Exchange, and the Shanghai
Grain & Oil Exchange and business started in December 1999. Futures products
currently include copper, aluminium, natural rubber, fuel oil, zinc and gold futures
contracts. See Shanghai Futures Exchange Home Page (follow `About the Futures
...