International Monetary Fund. Monetary and Capital Markets Department
INTERNATIONAL MONETARY FUND
The authorities' vision of ensuring that the capital markets support China's transformation towards a more market-oriented economy has driven capital markets development and-as the authorities recognize-the regulation and supervision of the markets. In some areas the specific characteristics of the market combined with the vision of capital markets development have prompted the China Securities Regulatory Commission (CSRC), as the main regulator of the securities markets, to adopt different approaches to the regulation and supervision of the market than those adopted in other large markets. At times such an approach has encountered challenges and the balance between market development and stability has been difficult to strike. Moving to more market-based solutions should allow the markets to work more efficiently but this should be done in a carefully sequenced way.