Challenges from WTO Membership
Edited by Kam C. Chan, Hung-Gay Fung and Qingfeng ‘Wilson’ Liu
Chapter 13: Chinese Financial Markets: Regulators and Current Laws
13. Chinese ﬁnancial markets: regulators and current laws Mary Ip INTRODUCTION Since 1979 the Chinese economy has undergone extensive transformation from a command model into a socialist market system. Finance is a key branch of a national economy. As part of the overall economic reform, the Chinese ﬁnancial sector has also experienced signiﬁcant change. Chinese leaders are aware of the connection between a sound legal regime and investment, especially from overseas, which is vital to the continued economic growth in the country. Without a solid legal environment for business, investors would have no conﬁdence to enter the Chinese market. To translate this awareness into action, the legal system in China has been radically improved in recent decades fostering the economic reformation process. There has been an explosion in the volume of legislation, especially for laws governing business activities. China accessed the World Trade Organization (WTO) in 2001, oﬃcially marking the country’s integration into the world economy. Beneﬁts ﬂowing from the consequential increment in foreign investment and international exchange would encourage China to further modify its legal structure. Besides, the transparency principle under the WTO agreements is a catalyst for China to move toward a system governed by rule of law. The transparency commitment not only compels China to make available to signatory members the laws it has passed, but also to put them into practice. Development in the ﬁnancial industry has been accelerated by the WTO membership because, in accordance with the WTO Accord, China is...
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