Legal Aspects of Foreign Investors’ Access to the Securities Market of the People’s Republic of China

The People’s Republic of China is the second largest economy in the world. One of the foundations of China’s economic prosperity is a well-developed financial market and, in particular, the securities market. However, the implementation of investments in the Chinese securities market by foreigners is significantly hampered by administrative barriers and direct legislative restrictions. This paper analyzes the legal regime of foreign investment in the securities market of the PRC. The legal regulation of separate legal mechanisms aimed at realization of direct foreign investments in the PRC securities market, such as the status of a qualified foreign institutional investor, as well as exchange and depository links, is researched. The comparative legal aspect assesses the correlation of foreign investment mechanisms in Russia and China and, taking into account the existing characteristics, proposes measures to develop mutually beneficial ways of legal regulation for both countries.