Regulations On Behavior Of "rat Trading"

Securities market in our country has a short history of surviving From its establishment, but it develops rapidly. When securities market develops rapidly, there are behavior of"Rat Trading", insider trading and stock price manipulation in securities market. Especially, behavior of"Rat Trading"has the characteristics of strong imperceptibility and high rate of return, combined with deficiencies and loopholes of the legal regulation on securities market, so it develops rapidly. It has a huge damage to the investors'interests, and undermines the confidence mechanism in the market, and blocks the development of securities market. Funds industry is strengthened to supervise in our country .Behavior of"Rat Trading"is regulated in the Criminal Law Amendment2009(7),but such provisions are not enough to satisfy the development of securities market. Tu Qiang who is the fund manager of Inversco Great Wall Fund Management Company Limited, Han Gang and Liu Hai who are the fund managers of Great Wall Fund Management Company Limited are suspected of"Rat Trading"by China Securities Regulatory Commission. Their cases are used to be a typical case to draw out the main purpose of the paper: regulations on behavior of"Rat Trading". In the content, the paper is divided into four parts.The first part of the paper summarizes behavior of"Rat Trading". It explains the concept,the legal characteristics and necessity of regulations on behavior of"Rat Trading".Through comparatively analyzing regulations on behavior of"Rat Trading"in America,England and Japan, the second part of the paper comments regulations on behavior of"Rat Trading"in foreign law. It brings the inspiration to Regulations on"Rat Trading"behavior.Through the historical analysis method, the third part of the paper expounds regulations on"Rat Trading"behavior in China. After it states legislative process of regulations on"Rat Trading"behavior, it puts emphasis on legal status. It admires what we have done successfully in legislation and promulgates the questions on regulations and judicial practice.On the basis of referring the foreign successful legislation experience on regulations of"Rat Trading"and considering the situation of securities investment fund market and the legal basis in China, the forth part of the paper seeks many useful legal means in regulating"Rat Trading": improving illegal cost; widening a way to relieve the people who buy funds; limiting funds practitioners investment; strengthening supervision of Fund Management Company Limited; remodeling image of funds practitioners.