Title: Shenzhen's Decision to Be Delisted from China's Securities Law
Introduction:
China's Securities Law (CSL) has been under scrutiny for several years, with concerns over its impact on foreign investors and the potential for abuse. However, in recent months, it has become clear that Shenzhen, a city-state located in southern China, has taken a significant step towards delegating some of its securities laws to other jurisdictions.
The Reasons for Delegation:
The reason for Shenzhen's decision to be delegated is twofold: First, there was a growing concern among Chinese companies about the potential for corruption in the country's financial system. As a result, Shenzhen sought to ensure that the securities laws were not being abused by foreign investors. Second, there was also a desire to improve the transparency and accountability of the Chinese stock market.
Delegation Process:
Shenzhen had to undergo a rigorous process before being granted the right to delegate securities laws. This included a review of the company's internal controls, as well as an examination of their compliance with local laws and regulations. The delegation process was completed in late June 2017, and Shenzhen was officially delegated to the People's Bank of China (PBC).
Impact on Foreign Investors:
It is difficult to predict exactly how this decision will affect foreign investors, but one thing is certain: it will likely have a significant impact on the Chinese economy. With Shenzhen's move to become a delegator, foreign investors will have more options when it comes to investing in the Chinese stock market. This could potentially lead to increased foreign investment, which would boost the overall growth of the Chinese economy.
However, it is important to note that Shenzhen's decision to be delegated does not mean that the Chinese government is completely out of control. In fact, it is expected that the PBC will continue to play a key role in overseeing the securities markets in China. Additionally, the PBC will still be responsible for ensuring that the securities laws are adhered to, as they will continue to enforce the law through regulation and enforcement.
Conclusion:
In conclusion, Shenzhen's decision to be delegated from China's Securities Law is a positive development. It should help to improve the transparency and accountability of the Chinese stock market, while also allowing foreign investors to invest in the Chinese economy. However, it is important to note that the PBC will continue to play a crucial role in overseeing the securities markets in China, and any changes to the laws or regulations must be carefully considered.