Research On Inside Trading Behavior And Supervision In China's Capital Market

As an emerging market country,over the past 20 years,our capital market developed from scratch,finished the journey that developed country used hundreds of years.Similarly,a late start lead to that the rules and regulations of the capital market is not perfect,it can be said that insider trading happened since the beginning of China's capital market.At present,with further innovation and development of China's capital market,insider trading has become more complex and subtle.In this context,what is the important features and the new trends?What is the market reaction to insider trading?And how to real-time monitoring of insider trading?How to build a comprehensive and integrated prevention and control system?Etc.These all placed in front of us,needed in-depth study.This paper analyzes the existing regulatory system,of China's capital market,based on the rich case database,and summarized the essential features of insider trading,and to study the market reaction to insider trading,focusing on the problem of insider trading in the field of mergers and acquisitions.Further,from the perspective of strengthening the supervision of insider trading,circumvented a real-time monitoring model and analyzed the cognizance of insider trading and regulatory mechanisms in new trends of insider trading.Finally,put forward some specific recommendations measures for supervising insider trading in China's capital market.The main conclusions:First,insider trading cases on China's capital market has not been reduced with the enhancing of the insider trading regulation system,but the overall growth trend presented.Second,in the M&A process of China's capital market,the problems often occurred that information leaked and insider trading,and obviously abnormal fluctuations in price and volume-related securities occur in the M&A announcement date.Third,based on GARCH-ARJI model,to constructed real-time monitoring system of insider trading,and used the third gear warning criteria to ensure the efficacy of the early warning system which is operable and practical.Fourth,according to the actual situation of our country,we should establish optimal regulation mechanism suitable for China,build efficient multilevel and all-around comprehensive system for the regulation of insider trading.The innovative reflection of this paper:Base on the analysis of the response to the current insider trading market,to establish a reasonable framework,not only to have found the practical value of insider trading behavior in time,also to promote and expand the related theory research of insider trading.The main innovation points are as follows:(1)We made excessive turnover rate and fluctuation ratio as contrarian indicator of insider trading,to build the regression model,and inspect whether there is insider trading in the process of M&A process,and find what factors could stimulate or restrain insider trading.(2)Through the jumping probability of GARCH-ARJI model monitoring to achieve the real-time early warning and monitoring to the abnormal trading on insider trading,and has carried on the empirical analysis.(3)In this paper,the new type of insider trading behavior,such as insider trading based on market value management,across-market insider trading,multi-path and transmissive insider trading behavior in information institutions has carried on the preliminary research,and we propose a positive feedback model according to transmissive insider trading behavior.