other laws that support financial development and reform should be amended so as to protect both the creditor and the debtor. the revision of the criminal law should also reflect the current social environment so as to highlight criminal sanctions on corporate crime and the investigation of individual criminal liability. second, we should stick to the protection of the interest of the depositor, investor and creditor. protecting the interest of depositors of financial institutions and the interest of investors in financial products is always an important factor in the maintenance of the reputation of financial institutions. our present task is to study the fundamental legal relationship in the financial sector and to standardize the legal relationship concerning financial innovation products. while approving innovation products, financial supervisory bodies should work hard to protect such lawful rights of the investors as the right to know and the right to receive due return. we should step up our efforts in improving the insolvency law. under the basic principles of the insolvency law, we should formulate, while taking into consideration the unique features of bankruptcy of financial institutions, the regulations on the bankruptcy of financial institutions. we should also establish and improve the financial safety network and formulate a series of supporting laws and regulations such as the regulations on deposit insurance and the rules on administration of the securities investor protection fund. third, we should stress both self - discipline and external discipline. in drafting laws concerning financial supervision, we should stress the importance of a sound and complete mechanism for corporate governance by such players as commercial banks, brokers and listed companies. while emphasizing the self - discipline of financial institutions, we should also guarantee the autonomy of these institutions in their operation and leave sufficient room for their future development. fourth, we should raise the public awareness of financial risks and rules, which is one of the most effective methods for preventing financial risks and ensuring financial safety. during the process, we should foster the extensive publicity of credit culture, increase the awareness of risk prevention among the public and investors, and preach the virtues of lawful investment.

financial sector, the legal framework for the sector cannot eliminate all financial risks once and for all. however, a sound legal framework may help deter imprudent risk - taking activities of financial institutions and reduce systemic risks. furthermore, a favorable legal environment is the precondition for the steady performance of the financial system. the pbc is stepping up its efforts in improving the legal framework for the financial sector. more specifically, it is facilitating the formulation of the regulations on credit information management ; it is actively involved in the amendment of the enterprise insolvency law and the criminal law ; it is offering suggestions for the amendment of the securities law of the people ’ s republic of china ; it is drafting the law on anti - money laundering ; and it is doing research on the legal issues concerning the market exit of financial institutions, deposit insurance, legislation for financial holding companies, asset securitization, and entrusted wealth management. we hope to promulgate these laws, regulations and implementary rules as soon as possible so as to effectively regulate certain important financial activities. in a word, china ’ s legal framework for the financial sector should be overhauled necessary new laws should be drafted, existing laws should be amended as appropriate, and outdated laws should be invalidated. in the long run, we should not only focus on legislation but also on the enforcement of existing laws. in my view, the core issue of financial legislation lies in a scientific approach. different stages of the financial sector call for different approaches. at present, financial legislation should focus on improving infrastructure of the financial market, regulating legal relationship concerning financial innovation, advancing the coordination and effectiveness of financial supervision, and making the best use of market self - discipline. first, we shall approach financial legislation in a coordinated, scientific and comprehensive manner. china ’ s economic reform and financial reform are at a critical period, when the stand - alone strategy no longer meets the requirement. therefore, coordinated planning and rational thinking should prevail in financial legislation. specifically, we should gradually promote the integration and consolidation of the financial market through legislation ; regulate the trading of homogenous financial products through identical supervisory rules ; and ensure the consistency of the infrastructure ( such as the rules on issuance, registration, custody, settlement and liquidation ) in different markets. we should apply uniform rules in regulating the institutional innovation, business innovation and product innovation of financial institutions. we should also work on the sharing and transmission of financial - risk - related information among financial regulatory bodies.