A Study On China's Civil Compensation System Of Security Tort

With the stock marker prosperity, the securities market exist massive illegal activities, its hurt is huge. So protection of the rights and interests of the investors becomes an eternal subject of the development of the securities market. The spirit and one of the ultimate goals of Securities Law is to protect investor's legal rights and interests for the sake of both economic developments in the long term and push the healthy growth of securities market in the short term. Our securities market has been developing for over ten years, and the cases violating the laws and regulations occurred from time to time. However, the securities Law places more emphasis on public law than on private law, hence the rights and interests of the mass small and medium investors can barely be protected. Therefore, our country needs to establish the effective compensation system, let the investor participate in the compensation lawsuit, solves the market problem with the market way and finally promoting the regular development of securities market.The Supreme People's Court announced that stated the judicial explanation of the civil encroachment of right case caused because of being false about the security market, opened the door of law that investor's lawsuit safeguards the rights, on January 9th defines clear and definite provisions on the civil cases of Compensation caused by false statement, which indicates the preliminary establishment of China's civil compensation system of security tort. But these stipulation has some flaws, such as misses operationally, lacks necessary legal procedure and so on. Because of that, the securities markets basic function of optimizing resource collocation can not be realize, finally has limited legal function display.In our country, repair and perfect the civil compensation lawsuit mode of the securities in the existing legal system frame range has the special significance. Because of the amendment of China Corporation Law and China Securities Law, the legal actions for the compensation for securities ancestors" remedies go into a new age. the basic system of the civil compensation for securities has already completed, which including inside dealings, manipulating markets, and misrepresentations civil compensation system and so on. At present stage, it is urgently necessary to perfect these system. The compensation for securities is different from other co-litigation lawsuit, the geographical position of litigant is dispersible, so how to improve the whole securities civil actions effectively to protect mass small and medium investors rights and interests.This article falls into four chapters. Chapter one is basic on the qualifications of plaintiff and defendant, studies how to ascertain litigation parties and respective adducible evident liability. In Chapter Two, Basic on the transaction causation and loss causation, introduces the fraud on the market theory in securities market in America. In my view, China should establish binary system action of causality of civil responsibility in securities market. In Chapter three, described the particularity of case compensation for damage of the securities, has introduced some main ways of calculating in the theory and judicial practice at present, and to assert an calculate the way not to go on detailed analysis and comments loss of our country judicial explanation correctly. Chapter four described the kind of the lawsuit form of the civil compensation case of the securities and relevant regulations of our country, compare the different lawsuit form of foreign countries to study and introduce the lawsuit form in the civil action of securities of our country, and in the case of infringing of the securities clearly, adopted the representative confirmed of the group lawsuit system of Germany and the group lawsuit system of USA.