Regulatory agencies may, whether outside of set rules or within their discretion, depart from the original goals or principles set for enforcing the rules, which we term selective enforcement. Taking China, a country in transition, as an example, and using cases and large-sample tests, we...

In a changing transition economy, Chinese government regulations that adopt the relatively simple bright line rule formula are enforceable in practice. Taking the early reform-oriented policies of the China Securities Regulatory Commission (CSRC) as an example, we find that the CSRC did not...