Penetration Regulation in Chinese Financial Market

Abstract

“Penetration” supervision is an important topic concerned in the academic field of China’s financial law recently. On October 13, 2016, the General Office of the State Council officially put forward the concept of “penetrating” supervision, stating that “it is necessary to base on practice and research to solve the financial problems which exposed in the finance field”. Although “penetrating” regulation is a specific concept proposed for the special rectification of Internet financial risks, it has quickly gained the support of many scholars as soon as it is proposed, and some scholars even recommend it to be extended to the entire financial market. This paper focuses on the practice of China’s financial market, defines the connotation of “penetrating” supervision, sorts out the theoretical basis of “penetrating” supervision, types the Chinese-style “transparent” supervision. The realization path of supervision is to optimize the allocation of financial regulatory power and promote the healthy development of the market.