Regulating Securities Misconduct across Borders

This chapter aims to provide a comprehensive and critical examination of how Mainland China and Hong Kong cooperate to regulate cross-border securities market misconduct, and based on the examination, make suggestions for improvement. While the Mainland–Hong Kong cooperation has produced good achievements, there remain many important issues which can be broadly divided into two categories: substantive rules on the definitions of market misconduct and penalties for such misconduct; enforcement mechanisms in relation to information exchange, regulatory architecture and extradition arrangement. This chapter suggests that the substantive rules be harmonized to the extent possible and the enforcement mechanisms be unified as a long-term goal. Despite its peculiarities, the Mainland–Hong Kong case can contribute to the international discourse on the regulation of cross-border securities misconduct.