According to reports, a member of the CPPCC National Committee, assistant chairman of the SFC Zhu Congjiu recently in the "NPC and CPPCC", submitted a further revised "Securities Law of the people's Republic of China" proposal. Zhu Congjiu in the proposal pointed out, "Securities Law" should be made to further modify and improve, including further clear and perfect the national endowment insurance funds, housing provident fund, enterprise annuity and long-term capital investment in stock market related system, security mechanism, the securities market has become an important channel for people to share the fruits of reform and development.

   It is necessary for the "Securities Law" amendment. As Zhu Congjiu said, the newly revised "Securities Law" has been implemented for 6 years, the reform and development of China's capital market has made considerable progress, changes in market operation and the internal and external environment. Supervision practice, some "Securities Law" and the development of market reform, can not meet the conditions and problems have gradually emerged.

   But to amend the "Securities Law" which content is a need to fully consider the problem. From Zhu Congjiu's proposal, is considered more long-term funds to invest in the stock market, such as pension funds, housing provident fund, enterprise annuity market problems. These issues are of course need to be considered from the height of the legislation, but it should not be the "Securities Law" revised contents. In fact, the "Securities Law" still has a lot to modify the contents, as the change "Securities Law" is a major event, so in the revised "Securities Law", the need for a more comprehensive consideration, the "Securities Law" clause in some Chinese capital market development does not adapt, all possible to modify and improve the.

   For example, fraud, which is the capital market the biggest crime. But the "Securities Law" of fraud against ineffective obviously, even protect the suspect. "Securities Law" provisions of article 189th, the issuer does not meet the terms of issuance, the issuance of securities by deception, already issued, by the amount of the illegally raised funds of one percent more than five percent of the capital. That is to say fraud listing Corporation pay the highest do not exceed 5% fund-raising fine, can not to withdraw from the market or even legal market, which is obviously not conducive to the fight against fraud behavior.

   And as the listing of new shares, to improve the initial proportion of shares in circulation, it is always the market voice. But the "Securities Law" the third paragraph fiftieth about "public offering of shares to total shares more than twenty-five percent; the total share capital of the company more than RMB four hundred million yuan, public offering of shares accounted for more than ten percent of the listed conditions", was to allow the issuer to take advantage of.

   Not only that, "Securities Law" revision is necessary and the "company law", "criminal law" revision combined, synchronous propulsion. As with the "Securities Law", "company law", "criminal law" also has a lot of content is not suitable for the development of capital market needs. As Zhu Congjiu in the "NPC and CPPCC" mentioned "stock issued to the positive test", but the "company law" 142nd stipulates clearly, offering of shares before the company issued shares publicly, shall not be transferred within one year since the company's shares on the stock exchange daily. Also, the personage inside course of study suggested introducing America auction system in the new inquiry link, but the "company law" provisions of article 127th, shares the same type in the same issue, share issuing conditions and price should be the same. Therefore, if the above provisions do not change the "company law", the reform is difficult to promote.

   And according to the law can not be serious problems, which need further revision and perfection of "criminal law". Since Guo Shuqing was appointed as chairman of the SFC, repeatedly stressed on insider trading and other illegal acts "zero tolerance". But the "criminal law" decisions are often very loose. Such as insider traders, even if the circumstances are especially serious, only five to ten years in prison, and the illegal income more than five times the amount of fines. This and foreign legal decision to sit around the wearing of art, the apparent lack of deterrent, not "zero tolerance". So as to increase efforts to crack down on Illegal Insider Trading, "criminal law" to increase efforts to crack down on the relevant securities crime. 

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