The Politicization of Laws and Law Enforcement in China´s Stock Market

By analyzing the contents of China´s securities-related laws and the enforcement actions taken by China Securities Regulatory Commission, this paper argues that the legislation and enforcement of securities-related laws and the regulation of stock market are politicized by the ruling party and the government to promote their political agendas instead of investors´ interests. This paper further shows that such politicization has caused some serious consequences for China´s stock market and economic growth.