Title

The emergence of shareholder protection in China

Document Type

Book chapter

Source Publication

China's emerging financial markets : challenges and opportunities

Publication Date

2009

First Page

593

Last Page

616

Publisher

Springer

Keywords

Legal protections to investors, Stock market development, Political economy of legal development

Abstract

This chapter seeks to provide an understanding of how legal protection for shareholders gradually emerged in China. Specifically, we trace the underlying forces driving the emergence of legal protection to shareholders to the vested interests of the central government. We show that the evolution of the legal developments is consistent with the government’s changing interests in the stock market, with the provision of shareholder protection becoming an increasingly important instrument for the government to serve its interests. To a certain extent, the legal developments in China’s stock market show that the country’s legal systems still maintain the ancient tradition whereby ‘‘[t]he state promulgated laws to make sure its interests were advanced. As this was done, the interests of private individuals or groups of such persons were often protected as indirect results’’ (Jones 2003, pp. 15–56).

DOI

10.1007/978-0-387-93769-4_20

Publisher Statement

© 2009 by Milken Institute

Access to external full text or publisher's version may require subscription.

Additional Information

ISBN of the source publication: 9780387937694

Full-text Version

Publisher’s Version

Recommended Citation

Chen, L., Shum, C. C.-Y. & Wong, S. M.-L. (2009) The emergence of shareholder protection in China. In J. R. Barth, J. A., Tatom, & G. Yago (Eds.), China's emerging financial markets: Challenges and opportunities (pp. 539-616). New York: Springer. doi: 10.1007/978-0-387-93769-4_20

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