Solutions on the Problems Caused by China’s Legal Scope of Securities

There is no appropriate definition of securities in our Securities Law and it is also lack of functional standards. Stocks, corporate bonds and the securities which identified by the State Department are the very securities listed by the Securities Law. With the narrow legal scope of securities, the essential activities can not be determined scientifically, enterprises are hard to apply other equity securities to financing, and the crackdown on illegal securities activities and illegal fund-raising is covering a wide range. Learning from the investment contracts, private placement and small issues exemption system in the U.S. Securities Act,broadening the range of securities, and giving discretionary power of identifying securities to regulators and courts can solve these problems.