New Thinking in Financial Market Regulation: Dismantling the “Split Share Structure” of Chinese Listed Companies

China’s distinctive set of stock market institutions was introduced in 1990. Among the characteristics of China’s stock markets was a strict separation between different categories of investors. Listed companies issued different categories of shares to state shareholders, domestic corporate investors, domestic individual investors, and foreign investors. By 2005, the barriers segmenting China’s stock market had been significantly relaxed. Domestic investors were allowed to purchase shares previously reserved for foreign investors, and approved foreign investors were allowed to purchase shares previously earmarked for domestic individuals. Nevertheless, a crucial barrier remained. An ongoing debate among Chinese academics, investors, and policy makers focused on how to resolve the “split share structure” (guquan fen zhi) in which a minority of shares were tradable while the majority of shares (namely those reserved for domestic corporate and state shareholders) were excluded from the market. The split share structure was blamed for distorting prices and inhibiting development of the stock market. This paper analyzes the policy adopted to address the split share structure. To what extent does this policy change reflect new thinking on the part of China’s market regulators? This paper argues that analysis of policy making in China’s capital markets can help to distinguish between two competing assessments of China’s political economy. One account sees China pursuing a gradualist strategy, slowly but steadily expanding the role of markets. Another account sees China trapped in a semi-marketized and increasingly corrupt development pattern. The implementation of the split share structure reform program provides evidence to support the gradualist account of incremental, but persistent, reform. Mary Comerford Cooper is an assistant professor in political science at the Ohio State University. Her recent research focuses on the politics of financial markets in China and Taiwan. Earlier versions of this paper were presented at the Comparative Politics Research Workshop/ Globalization, Institutions and Economic Security Workshop at Ohio State University in May 2007, and at the annual meeting of the Association for Chinese Political Studies in July 2007. I benefited greatly from the constructive and insightful comments of Bj?rn Alpermann, Melanie Barr, Jean-Marc Blanchard, Sarah Brooks, Joseph Fewsmith, Sujian Guo, Dane Imerman, Ryan Kennedy, Marcus Kurtz, Xiaoyu Pu, James Reilly, Alex Thompson, Daniel Verdier, Jianwei Wang, Alan Wiseman, Bin Yu, and an anonymous reviewer. I am also grateful for Lan Hu’s exceptional research assistance. All remaining flaws are purely my own.     

我国学校毒品预防教育存在问题及其对策

目前,我国学校毒品预防教育仍存在着形式主义明显、教育方式不当、教育内容脱离实际、教育实效性不高、高校毒品预防教育薄弱等问题。为此,需采取以下对策:提高认识,加强领导;多种形式建设师资;加大政府投入,多渠道募集资金;编撰统一教材;保证课堂教学时间;完善责任机制和考核机制;将学校毒品预防教育与心理健康教育、生活技能教育、同伴教育、其他学科教学、网络技术、教育科研、家庭教育、社会教育等形式结合,拓宽学校毒品预防教育途径。     

Race as a factor in university admissions

In two recent cases, Grutter v. Bollinger, 539 U.S. 306. (2003) and Gratz v. Bollinger, 539 U.S. 244. (2003), the Supreme Court held that the Equal Protection Clause permitted state schools to use race-sensitive admissions in order to obtain the educational benefits that flow from a diverse student body. The diversity-based argument for race-sensitive admissions, scholarships, awards, and other opportunities at universities should have been rejected because it does not consider the full range of costs and benefits and because the more narrow educational effects probably weigh against such programs. However, this does not suggest that applicants’ race, ethnicity, and gender should be ignored. Rather the same consideration that led to the defeat of the diversity argument, i.e., reasoning capacity, supports the consideration of demographic factors. However, attention to such factors further undermines the consequentialist case for affirmative action.     

Punishment and Paperwork: White-Collar Offenders Under Community Supervision

This article examines how changes in penal ideology may affect the experiences of white-collar offenders under community supervision. In-depth interviews with white-collar offenders on their experiences while under federal probation are used to examine how changes in criminal punishment have undermined the traditional reintegrative and rehabilitative goals of community supervision. The analysis suggests that shifts to a more managerial, actuarial model that seeks depersonalized efficiency has unintended consequences that delegitimatize the criminal justice system, and foster sentiments of degradation. Based on these findings, considerations for future research are discussed.     

The effect of board size and composition on European bank performance

Banks are “special” financial institutions generating distinct corporate governance challenges. The present paper examines the relationship between two of the most pertinent corporate governance factors—that is, the size of the Board of Directors and the proportion of non-executive directors—and firm performance on a sample of 58 large European banks over the period 2002–2004. The empirical analysis embraces a number of bank-specific variables. Our results reveal that bank profitability is negatively related to the size of the Board of Directors, while the impact of Board composition, although positive in all models, is, in most cases, insignificant. The results are robust after controlling for firm-specific variables.      

Schadenersatzreform – Gefährdungshaftung und Unternehmerhaftung

Der Entwurf eines neuen ?sterreichischen Schadenersatzrechts sieht Regelungen der Gef?hrdungshaftung sowie der Unternehmerhaftung vor. Der Beitrag untersucht die jeweilige Ausgangslage, das Reformanliegen und die Konsequenzen einer Reform.     

<Emphasis Type="Italic">Peters Edition v. Batt</Emphasis>: The Intertextuality of Silence

The article deals, on the one hand, with a legal conflict between a musical performer/arranger, Mike Batt, and the estate of a composer of avant-garde music, John Cage, over copyright. It is also concerned with the field of intertextuality – how meaning is created in a text or in a work of art, whether it is visual, musical or verbal, through allusions and quotations to previous texts or works of art. The controversy, which did not reach the courts because of a pre-trial settlement, was over an author’s rights to silence, or, as in this case, a silent piece of music. The central issue discussed is the way in which silence may be considered – if at all, to be protectable.