3. The Regulatory Framework Under the CSRC

This chapter provides an overview of China’s contemporary regulatory framework in relation to the securities markets. Emphasis is on the equity markets and the role of the CSRC as the centralized regulator. An historical conspectus is provided from the introduction of Deng’s open-up policy to the present day in order to explain the evolution of the system to its current state. The chapter contains a survey of entities regulated by the CSRC, including the Shanghai and Shenzhen stock exchanges, the National Small and Medium Company Equity Market, listed companies, non-listed public companies, securities companies, public fund management companies, private fund management companies, fund management companies with foreign equity interests, Qualified Foreign Institutional Investors (QFII), RMB Qualified Foreign Institutional Investors (RQFII), and various industry associations. Key regulations and rules are identified and discussed. The chapter provides readers with a general view of the structure of China’s securities regulatory system at the national level and how it functions.