Abstract: After more than 30 years'construction and development, Chinese commodity trading market has already formed horizontal diversification and vertical multi-level market system. At the same time, the market function has diverted from supplement of planned economy to the dominant position which is decisive in resource management. Especially since the 18 th CPC National Congress,the government department lays great emphasis on market and commodity trading market. Under such circumstance, by the commission of market division from State Administration for Industry and Commerce,the research group from National Academy of Economic Strategy of CASS conducted study on commodity trading market development and regulatory system construction. On the basis of intense discussion and the research on more than 10 provinces, the research group presents this report. The main contents and core views are as follows.

Firstly, through the analysis on basic market concept, it puts forward that the nature of market is compound economic organization on which various agents gather at a certain place and space carrier for the transaction. On the basis of clarifying the concept of the market, the paper further sorts out the current situation of the confusion and misunderstanding of the concept of commodity trading market in different national departments and local governments. Then it proposes that the hosting entity and consuming entity gather at platform in order to transaction legally and freely on the basis of following management rules regulated by hosting entity and enjoying services it provided. In this way,it provides the theoretical and organizational main foundations for the main market entities on the market division of powers and responsibilities and government regulations.

Secondly, after working on the development of Chinese commodity trading market, the paper divides the development of commodity trading market into 7 stages:market default,the resumption of market trading, start-up of commodity market, commodity market differentiation, the improvement of commodity market regulation,structural reform of commodity market and commodity market transformation and innovation. After mastering status quo of commodity trading market, the paper concludes six major characteristics and five main trends.Six major characteristics are the large scale of markets, multilevel coexistence, diversified investment entities, weak desire for registration, large market share of consumer goods, the popularity of integrated market, east more and west less, east stronger and west weaker,improvement of service standardization, diversion of management thinking, the large-scale application of information technology, the integration of online and outline commerce. The main five trends include:stable development of market, clear trends of specialization, large scale and high efficiency of market, intensification of market integrated functions, mutual promotion of market and industry, enhancement of industrial chains, acceleration of information technology, integration of online market and entities.

Thirdly,on the basis of a large number of interviews andsurveys, the report concludes existing problems of our commodity trading market from three different aspects concerning regulation, main entities of market and the running of business. In the regulatory level,there exist 11 problems in terms of misunderstanding of market concept,unknown property,interference of power, inefficiency of regulation, lack of stand ards in running business, unqualified management, ambient market, running with no license, vagueness of legal status, unclear responsibility of major entities, prevalence of local protection,unsmooth relationship between government and enterprises, management of diverse divisions, buck-passing, lack of supporting services, relocation pressure, competition of international business giants, challenge of new industries, regional divergence, different level of development, lax middle organization and weak self-discipline industry. As to the management of hosting entities, there are five main loopholes which are property confusion, difficulty of unified management, weak awareness of law enforcement, lack of the sense of responsibility,lag of equipped facilities,weak brand awareness,lack of powerful industry support,ambiguous consuming trends,less capable application of information technology. For the entities who run business,there are four issues concerned. They are difficulty on financing, high cost of financing, small scale of business, weakness of resisting risks, difficulties in replacement between young and old, trouble of continuous operation, low level of probity and lack of self-discipline.

Fourthly, through the study of the basic concepts of supervision, administrative supervision, industrial and commercial administrative regulation, the paper clearly illustrates five major functions about commercial and administrative supervision with regard to the entrance of major market entities, protection of market orders, market right protection, Market cultivation norms and market services. Then,it divides responsibilities of industrial and commercial department after its establishment into 5 phases according to the main duties of commercial department at different stages. The five stages are all about market cultivation, construction management, market construction and management development, decoupling of administration and execution, regulatory supervision and longterm mechanism exploration. What's more, in line with“Three New Regulation”made by the State Council, the paper furthernotes that industrial and commercial administrative management is the special pattern of our country's administrative supervision after mastering and analyzing six major functions of industrial and commercial administrative management（draft of market regulation, the entrance and supervision of market entities, protection of market order, market protection, market services, cultivation of market entities）. The management not only possesses the characters like rights bound by law, independence of department, administrative discretion, regulation by law, protection of collective properties, but also embodies Chinese style administrative and integrated management, complicated supervision, authority of law enforcement and multiplicities of task.

Fifthly, after subjectively recognizing historical contribution made by industrial and commercial administrative management department on issues like market cultivation and regulation and protection of market order. It is pointed out that current industrial and commercial departments are facing ten problems in the market supervision function, namely, unclear market concept,vagueness of entities'responsibilities,lack of ability in establishing rules and regulations, lag of laws and regulations, weakness of market access, ambiguous duties of hosting entities, unclear responsibilities, poor coordination, hard investigation on unlicensed operation, poor environment of law enforcement, difficulty in legal supervision, weakening of legal rights, backward law enforcement, shortage of talents within the team,low operational capacity,heavy burden of supervision,short of forces in supervision,shortage of fund,difficulty in responsibility fulfillment, dislocation of duties and taking the branch for the root. On the basis of them,the paper puts forward six directions and trends in adjustment of industrial and commercial supervision which include perfecting laws and regulations, supervising in accordance with law, constraining market,credit supervision,participation of multiple entities, supervision from community, building information platform,promoting information regulation,unifying market,joint supervision, positive guidance and incentive regulation.

Sixthly, our country's market regulation is facing new political trends, namely,“decisive position of market in resources management”and“comprehensively promoting the rule of law”. The development of market reflects new circumstance which underlines three-dimensional development, complexity of main entities,informatization of supporting technologies and integration of online and offline market. Furthermore, industrial and commercial supervision departments also confront new trends like decentralization, unified regulation and supervision, perfecting rules and regulations, supervision in the light of law, information disclosure, self-discipline of market, application of information technology, network supervision, joint efforts of different divisions and integrated supervision. On the basis of new trends, the paper recommends 12 advices covering clarification of concepts,division of main entities, classified supervision,highlighting of focal points,perfecting laws and regulations, figuring out borders, abolition of“methods”, fulfilling responsibilities in accordance with law, diversion of old thoughts,innovative supervision,specification of entrance regulation, licensed supervision, credit incentive, self-discipline of market, improving classification of credit, strengthening market incentives,unifying platform,integrating supervision, nurturing self-discipline of the intermediary and industry, establishing market association, promoting self-discipline of industry, strengthening government responsibility and constraining government power.