The securities market inevitably suffers from market failure. Therefore, the w88 sports betting theory of supervision can be extended to the securities market, that is, in order to increase social welfare, the government and its regulatory agencies must supervise and manage the behavior of various entities in the securities market.

Protecting the vulnerable groups of small and medium-sized investors truly embodies the idea of putting people first and respecting public interests, and only then can market confidence be established.

There are many problems in my country's securities market. It is these problems that affect the implementation of the Chinese dream of capital markets. Are these problems related to the guiding ideology of supervision? The author believes that the guiding ideology of my country's securities market supervision must adhere to the w88 sports betting theory, but how to adhere to it is a problem. In the Chinese securities market, who is most eager to realize the Chinese dream of the stock market? Who represents the w88 sports betting? Can the widely advocated w88 sports betting theory solve this problem? The author believes that market participants should be a community of interests, and the majority of small and medium investors are the representatives of public interests.

w88 sports betting theory believes that there are problems such as monopoly, externalities, and information asymmetry in the market, which lead to market failure. If left unchecked, it will lead to injustice or inefficiency and reduce social welfare. Therefore, the government needs to use its "visible hand" to carry out necessary intervention to solve the problem of market failure, promote the optimal allocation of scarce resources, and maximize social welfare. The w88 sports betting theory means that regulation is a method provided by the government to correct market failures in order to meet public demands. Through regulation, public welfare can be obtained and potential welfare can be improved. The w88 sports betting theory has three important assumptions: first, the government regulatory departments serve the w88 sports betting; second, the regulatory departments have unlimited capabilities and complete information; third, the regulators have complete credibility (i.e., credibility).

As the core and most dynamic market in a country’s economy, the securities market inevitably suffers from market failures common in other markets. Therefore, the w88 sports betting theory of supervision can be extended to the securities market, that is, in order to increase social welfare, the government and its regulatory agencies must supervise and manage the behavior of various entities in the securities market.

The w88 sports betting theory has not only been generally accepted by economists for a long time, but also is considered an important theoretical basis for guiding supervision. It is currently one of the most well-developed theories in supervision. However, the application of this theory in China has been questioned by many and needs improvement.

The most important point is that the consistency of its assumptions is questionable. An important assumption of the w88 sports betting theory is that regulation is a response by the government to public demands to correct unfairness, injustice, inefficiency or even inefficiency of certain social individuals and social organizations. It is a response to the requirements of the w88 sports betting of the entire society. On what basis does the government respond? Obviously, he appears in the market as an image of selflessness, kindness and abilities beyond ordinary people. This is obviously very unrealistic in actual operation.

First, all economic behaviors are ultimately human behaviors. Under the assumption of rational economic man, if the market fails (of course it is caused by the behavior of people in the market), the government must be higher than other participants in the market? Will it definitely be able to solve the failure problems that the market cannot solve? Obviously, the consistency of the premises assumed by the w88 sports betting theory is logically debatable. This point, in China’s securities market20It has been fully proved in the history of many years of development.

Second, the cost of supervision is very high. The w88 sports betting theory also assumes that government regulatory actions are effective and cost little. But in fact, government regulatory actions may not always be effective, and regulation has costs. Rent-seeking arising from regulation is also a typical indirect cost. The cost of regulation also includes the moral hazard that regulation may create.

Third, the w88 sports betting theory holds that the potential scope of government regulation is almost unlimited. Because it is difficult to achieve perfectly competitive market conditions, market failure is inevitable, and the potential scope of government regulation can be expanded almost infinitely. In this way, the government must replace the market in its role. However, in the practice of China's securities market supervision, people realize that in many cases, the costs incurred by government supervision are far greater than the potential benefits brought by supervision.

Fourth, the w88 sports betting theory does not study the real situation of the regulators themselves and assumes that regulators are "moral supermen". This theory not only ignores the limited rationality of government regulators, but also ignores the reality that the government may be captured by interest groups.

It should be pointed out that the w88 sports betting theory requires the pursuit of maximizing social public interests, and the establishment of various regulatory systems and frameworks is based on social public interests. However, social w88 sports betting is difficult to define and is a concept that cannot be regulated institutionally. Regulatory departments often only represent the interests of the government and cannot regard government interests as natural public interests, otherwise they will deviate from the regulatory objectives.

It can be seen that the w88 sports betting theory is flawed and cannot be idealized or absolute. Otherwise, the guidance of practice will be harmful.

In fact, it is normal for market participants to have different starting points, local interests and ways of thinking, but they should have the right to speak. And we cannot harm the interests and voice of some people to satisfy the interests of others. The reality in China is that the interests and demands of small and medium investors have not been given due attention.

The normal development of the market must require that the legitimate interests of all participants should be valued and respected. Although regulators and regulated persons, including fund companies, listed companies, securities firms, small and medium-sized investors, etc., have conflicts of short-term local interests, if the legitimate interests and demands of any group, especially the vulnerable groups, cannot be respected, it will definitely harm the entire market, thereby affecting the interests of the powerful groups themselves. Therefore, all participants should be a community of interests as a whole, sharing the opportunities and benefits brought by the long-term healthy, sustainable and stable development of this market.

The author believes that when the w88 sports betting theory is applied to the supervision practice of my country's securities market, it first requires the government to place the protection of the interests of small and medium-sized investors in an important position in the supervision process of the securities market. Because the operation of the securities market depends to a large extent on the confidence of participants. Moreover, from an ethical point of view, the history of the development of China's securities market for more than 20 years is a history of small and medium-sized investors making selfless contributions to the relief of state-owned enterprises. Only by protecting these vulnerable groups who have made huge sacrifices and contributions can we truly embody the idea of putting people first and respecting public interests, and can market confidence be established.

When promulgating a securities market regulatory regulation or policy, its possible effects and costs must be carefully evaluated, and the "degree" of regulation must be mastered so that the regulatory effect can truly benefit the majority of small and medium-sized investors; at the same time, regulatory technology must be improved and developed as much as possible, and national laws and regulations must be improved to prevent them from being exploited by large regulated persons.

(The author is a professor at the w88 casino)

Attachment: Original report link:

http://stime.p5w.net/news/xwpl/201311/t20131113_375231.htm