Comparative Study On Insider Trading Crime Legislation In China And The U.S.

The insider trading legislation of the U.S. is a model for the other countries because of the abundance of insider trading theories and of the relative consummation of the legislation. The insider trading legislation in China, though just started in 1990s, has a rapid growth through using insider trading legislations in developed countries, such as the U.S., for reference. Therefore, the purpose of this thesis is, through comparative study on insider trading theories, insider trading legislations, and the insider trading legislative history in both China and the U.S., to find out differences between the Chinese insider trading legislation and the U.S.'s insider trading legislation, to try to analyze reasons of the occurrence of these differences, to discuss advantages and disadvantages of insider trading legislations in these two countries, and to put forwards suggestions on how to improve insider trading crime legislation in China.Chapter one of the thesis will describe insider trading theories and the possibility and necessity of using criminal law to prohibit insider trading. Most of the insider trading theories described will be from the U.S. since there is a lack of insider trading theories in China. The insider trading theories from the U.S. will be further divided into two parts, the change of U.S. legislatives'viewpoint to insider trading and the focus of the influence of insider trading to companies and the market in academia.Chapter two, the comparative study on the subject of insider trading crime, will firstly describe the subject of the crime in the U.S. Since the expansion of the subject of insider trading is along with the development of classical theory and appropriation theory, the author will discusses the subject of insider trading crime together with these two theories. The discussion of the subject of insider trading crime in Chinese legislations will focus on rule one hundred and eighty of Chinese Criminal Law and rule seventy four of Chinese Securities Law, and on the concept of"people who know the inside information"and"people who acquire the inside information illegally". Through comparison, the author will get the conclusion that, though adopting different ways to prescribe, the subject of insider trading crime in China and the U.S. are essentially the same.The third chapter of the thesis will compare the objective indictment of the insider trading crime in China and the U.S. There are three sections in this chapter. Section one will analyze similarities and differences of the objective indictment of insider trading crime in China and the U.S. through comparing relative statutes from these two countries. Section two will compare the legislative concept of inside information in China and the U.S., with the conclusion that both China and the U.S. legislators consider materiality and nonpublicity as main characteristics of inside information. Section three will talk about the"possession vs. use"issue, with the conclusion that the original legislative meaning of the rule one hundred and eighty of Chinese Criminal Law is to uphold the possession standard.Chapter four will introduce legislative histories of insider trading in China and the U.S. Though the general trends of insider trading regulations in both countries are to become stricter, they follow different patterns because of different legislative histories of insider trading in China and the U.S. At last, the author will put forwards five suggestions on how to improve Chinese insider trading criminal legislation in chapter five.