Zhou Xiaochuan, chairman of China Securities Regulatory Commission (CSRC), said here Tuesday that the protection of investors' legitimate rights and interests is always the top priority of the CSRC's work.
It is the basic guiding principle of the CSRC to ensure a transparent, fair and impartial market, said Zhou at the China Forum of the ongoing 16th World Congress of Accountants held in Hong Kong.
Zhou said that a legal framework of the securities market with the Company Law and the Securities Law as the core has been basically formed in China after more than ten years' efforts.
Compared with other legal documents, securities laws and regulations contain more specific rules and refer more to the international practice with more transparency, he added.
In terms of the market structure and functions, Zhou said the CSRC took further steps to regulate the institutional investors and gradually change the investment ideology in the market.
In response to the vicious speculation of small cap stocks, the CSRC approved listing of large-scale enterprises and improved the stability of the market, Zhou said, adding that CSRC also improved the creditability of the financial statement of the listed companies by setting up higher standard of accountancy and disclosure.
Zhou revealed that the CSRC is studying the feasibility of introducing derivatives such as futures and options to increase the risk-resistance capability of investors.
In dealing with corporate governance, Zhou said the CSRC's measures include approving listing of more private and foreign-funded enterprises, reducing the proportion of the state-held shares and formulating corporate governance regulations.
Moreover, the CSRC is working hard to enhance the market regulation and surveillance, increase the moral standard of the intermediaries, and promote the globalization of sound accountancy standards and the accountancy profession, he added.
(Xinhua News Agency November 20, 2002)
