Conclusion, Limitations, and Future Research

8.1 Conclusion

During the last two decades, the Chinese stock markets have been undergoing a significant amount of change, including changes in rules, regulations, and trading policies. For example, since March 2010, 25 securities firms have been approved to carry out margin trading; short selling has been tried among a small number of brokerage firms since 2012. Meanwhile, CSRC continues to work on increasing the transparency of listed companies, developing corporate governance and decision-making mechanisms, steadily moving ahead with the reform of delisting procedures for listed companies, strengthening the prevention of insider trading at its root, strengthening legal framework and integrity of the capital markets, propelling the opening up of the securities market, with the objective to develop a more improved market, and strengthening the market’s finance function in China.