Abstract:

The opening - up of a securities market is a two - bladed sword, because it brings great profits along with its great risks. The opening - up of overseas securities markets has three models: indirect opening - up model, limited direct opening - up model, and complete direct opening - up model. As to China' s securities market, its opening - up should adopt the two - phase model. Before RMB is freely exchangeable, we should adopt a combination of indirect opening - up and limited direct opening -up models. In many years when China's domestic economy develops to a certain degree and its financial market is improved, it is time to adopt the complete direct opening - up model based on free exchangeable RMB and a "mature" capital market.

Key words: securities market, opening - up model, free exchangeable RMB