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Washington Law Review

Abstract

In the late 1970s, the People's Republic of China (P.R.C.) embarked upon a program of economic reform that has resulted in the issuance of equity securities in previously state-owned enterprises. with the recent advent of national stockmarkets, national securities legislation is emerging to supplement and further define prior local-level regulation. Despite these new laws, however, private investors still lack many of the protections enjoyed by investors in Western financial markets. This Comment examines these disparities and suggests that non-state investors in China's nascent financial markets still lack an effective means of overseeing the policy decisions of State-owned corporations and face difficulties in obtaining redress from fraudulent conduct within the marketplace. Moreover, this Comment argues that the status of ownership rights in China's socialist system still is uncertain. This Comment then proposes a program which would diversify state interests in enterprises that would be both satisfying politically and encouraging of further reform.

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