Robin) Hui Huang

Institutional Structure of Financial Regulation in China: Lessons from the Global Financial Crisis

In light of the recent global financial crisis, this article aims to critically examine Chinas financial regulatory structure and, based on the results of such examination, set out reform proposals for China. At present, China adopts a traditional sectoral system of financial regulation, which has exhibited several inadequacies in meeting the regulatory challenges in a rapidly changing market. In quest of a solution to the problem, a comparative analysis is conducted of the financial regulatory regimes in some advanced economies, including the US, the UK and Australia, each of which is representative of a distinct regulatory model. When looking to these overseas experiences for guidance, regard is taken not only of their objective advantages and disadvantages, but also of the local conditions in China. It is concluded that the US model merits consideration in the short term and, with the further growth of Chinas financial markets in the long run, the Australian model provides the preferred direction for reform over the UK model.

Piercing the Corporate Veil in China: Where is it Now and Where is it Heading?

This paper presents the results of the first comprehensive empirical study of China’s veil-piercing cases adjudicated under the statutory veil piercing regime as introduced in the 2005 company law reform. It provides insights into the way Chinese courts have interpreted and applied the veil piercing doctrine, an area of law renowned for its complexity and uncertainty worldwide. Some comparisons are drawn between the results of this study and those produced by similar studies in common law jurisdictions from which the Chinese veil-piercing regime was transplanted. The empirical findings are analysed to answer the question of whether and how China’s veil-piercing law has fulfilled its stated mission to protect creditors. In doing so, a number of suggestions are made with a view to improving the efficacy of the veil-piercing regime in China. The paper also applies the interest-group theory to explain and predict the development of China’s veil-piercing regime. The outcome of the research would be of considerable significance to, amongst others, foreigners who lend funds to, contract with, or invest in Chinese companies.

The Statutory Derivative Action in China: Critical Analysis and Recommendations for Reform

The article conducts a critical analysis of the newly introduced statutory derivative action in China and then makes relevant recommendations for reform. The introduction of derivative actions is a major development in Chinese company legislation. In general, the provisions have established a basic legal framework for the bringing of derivative actions, and it is expected that the regime will have important implications in practice. However, there are some serious problems that need to be properly dealt with in order for the derivative action to function more effectively. The article looks at these problems from a comparative perspective, drawing on overseas experience, and sets out reform proposals, taking into consideration Chinas particular situation.