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
Language
English
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