Many of the 70,000 or so certified public accountants are still attached to state-owned enterprises. Already, in a Shanghai court, an investor is suing a listed company's directors and its public accountants for deficient disclosure of company accounts. In Taiwan, an Investors Protection Fund has been set up to assist investors to litigate cases of particular public concern. It is hoped this fund will protect investors' rights while establishing a culture of due diligence. In time, it may be feasible to have a similar fund oversee mainland markets.
Confidence is the ultimate test for any market.
The Securities Law will give China the framework to meet this test. Anthony Neoh is a visiting professor of law at Peking University and the former chairman of the Securities and Futures Commission in Hong Kong. Review Publishing Company Limited, Hong Kong. All rights reserved. Search Tips Prev.