Research On The Legal Issues Of Transnational Securities Fraud

With the internationalized development of global securities market, the transnational securities frauds become more and more intense. Since the great damages caused by transnational securities frauds not only brought disastrous loss to international investors, but also disturb the exchange order of international securities market, it is necessary to use legal instrument to control international securities fraud. Chinese government promised to open domestic capital market step by step when entering WTO, but the domestic securities market are still not completely open at present. Besides allowing domestic agencies to issue stock A and B, our country only allows domestic agencies to raise money in the overseas securities market. However, the foreign agencies still can not issue securities in domestic market. Therefore, in order to link lines with international capital market as soon as possible and perform the promise Chinese government made when entering WTO, our country must enhance the development of securities market internationalization on one hand. And on the other, under the large environment of international securities market, our country must keep the standardized development of capital market, control and restrain transnational securities fraud, borrow the legislative and judicial experience of western developed countries, strengthen the supervision and control cooperation with other countries, seek for better legal protection ways, maintain a good international securities exchange order while aiming at domestic agencies' raising money abroad.For the purpose of preventing the international securities fraud, this paper, applying analysis and compare methods by concluding the expressive forms of international securities fraud, emphatically analyzes the securities anti-fraud legislative present condition of U.S., EU and our country. It also expounds the international cooperation achievements of transnational securities anti-fraud supervision and control, and taking U.S. courts' transnational securities anti-fraud judicial precedents as an example pointsout that transnational securities fraud jurisdiction and extraterritorial application conditions of U.S. securities anti-fraud law. In the end, considering the specific provisions in the Securities Law of PRC enforced in Jan. 1, 2006 and some related laws and regulations, by comparing with other countries' civil responsibility legislation of securities fraud, this paper states defects to perfect of Chinese securities fraud's civil responsibility system, and also gives several propositions on how to prevent transnational securities fraud in China.