This article will examine the development of China’s securities market, explore some resulting paradoxes, and discuss how to solve them.  Part I of this article will describe the historical development of the market and its current scale.  The emergence and development of the securities market in China truly reflects the transition of a once soviet country from pure socialist public ownership to a mixed economy, namely, part socialism and part capitalism.  Part II presents a comprehensive description of the legal framework of China’s securities markets, including securities issuance and trading, and market regulations.  In this part I will also describe how this framework affected by international, especially by western community.  Part III gives a detailed discussion on foreign involvement in the market, particularly on B shares which can be traded by foreigners, and on China’s overseas listings.  Part IV explores the GATS’s impacts on China’s securities market, indicating that, to meet the WTO requirements, China must conduct reforms to nondiscriminatively admit foreign firms into its domestic markets.  These two parts essentially reflect the influence of financial globalization on China.  Part V analyzes current problems that might retard or stifle the further development of China’s securities markets, concluding that, in order to foster a successful securities market, China’s only solution is to foster privatization of its State-owned enterprises.