Why China's Judiciary is Not That Important: Through the Lens of Regulating China's Securities Markets

China's securities markets have experienced rapid growth in the past two decades. The Shanghai Stock Exchange, for example, was ranked the fourth-largest stock exchange in the world as of end of June 2018. China's judiciary has been absent in protecting the interests of investors in its securities markets. This therefore raises the obvious question of who plays the role in protecting Chinese investors in this fast-growing and potentially volatile market. This article finds the Chinese state, by deploying various political resources, plays a direct role that is often more significant than that played by the judiciary in protecting investors' interests. China's capital markets are reflective of its unique historical and contemporary conditions. The establishment and development of China's securities markets are made possible under the direction of the state.