The newly-amended Securities Law has more room for the future development of the country's stock market, said former chairman of the China Securities Regulatory Commission Zhou Zhengqing Thursday, hours after the top legislature adopted the amendments.
The amended law has over 100 amendments, making it look like a completely new law.
One of the most important amendments is that it allows the State Council to stipulate new regulations regarding the management and operation of different financial sectors including banks, securities companies, trust companies and insurance firms, according to Zhou.
It leaves room for future reforms in this field, with the possibility of allowing different financial firms to enter into others' areas.
Meanwhile, the new amendments also give the State Council the final say on whether securities dealers are allowed to provide loans to investors and state-owned companies or state-held firms are allowed to trade shares on the stock market.
The newly-amended law includes articles on the setting up of a state fund for the protection of investors. Accordingly, the China Securities Investors Protection Foundation Limited was established on September 29.
Moreover, the amended law has required securities dealers to place clients' accounts separate from their own accounts.
(Xinhua News Agency October 28, 2005)
