内幕交易激增：由于中国大多数企业是由国家拥有，无法交易的股份，大多数这些机构内部人士都很幸运，并为股票提供了财富。这个基本障碍广泛传播，股市被称为“无规则赌场”（Ho et al。2012）。然而，由于缺乏关于受托责任的知名概念，这个问题更加严重。而且，是因为“中华人民共和国法”的规定是以一周的方式执行的。
到2001年，证券诉讼没有出现在中国境内。这是中国最高法院关注发展投资者框架的（Ho et al。2012）。根据这一框架，上市公司因虚报财务披露而被起诉。但即使在这几年，这个过程也是麻烦而且很慢。
Rampant trading by insider: Due to the fact that majority of the enterprises of China are owned by the state, with shares that cannot be traded, insiders within most of these organizations were lucky enough and managed to make fortunes on offerings of stock. This basic obstacle is spread across widely that the stock markets had been termed as the “Casino without Rules” (Ho et al. 2012). However, the issue has been exacerbated due to the lack of a well known concept regarding fiduciary duty. Also, it is due to the fact that the provisions of the Chinese Law have been enforced in a week way.
Weak mechanisms for controlling false disclosure of finance: Financial reports being fabricated by corporations has been identified as an extremely serious issue within China. Even though steps are being initiated for changing the culture of business that have been tolerating corruption, weaknesses within the profession of accountancy, the courts, and the media undermining reforms.
The profession of accountancy has comparatively less level of independence from management (Abrami et al. 2008). Due to the lack of independence, it has been suffering from a serious scarcity of highly qualified auditors. Even though the media has been making progress in exposure of corporate fraud, hiring of journalists are mostly done by a process that is affected by senior officials of corporate.
Litigation of securities had not appeared within China until the year 2001. This was when the Supreme Authorities of Court of China had focused on the development of a framework for investors (Ho et al. 2012). According to this framework, listed companies were sued for losses that occurred by false disclosures of finance. But even in the current years, the process has been cumbersome and slow.
Immature markets of capital: Finally, it has been seen continuously that China is suffering from immature markets of capital. This has been characterized by the preferential treatment by Chinese banks regarding enterprises owned by state. Further ahead, difficulties are faced in issuing bonds of corporations, and the lack of an over the counter corporate market of debt and market of securities.