Study On The Crime Of Divulging Securities Inside Information

As an emerging market appearing in the early 1990s, the Chinesesecurities market has experienced tremendous improvements in recentyears. However, at the same time, related unlawful actions have beenemerging and exerting an increasing negative influence on thesecurities market, among which divulging securities insideinformation seriously destroyed the ordinary market orders andinfringed investors'rights and interests. Thus, it is of greatimportance to supervise the securities market, and to control thesecurities crimes including divulging securities inside information.As a new type of crime, divulging securities inside information hasdrawn more and more attentions. Due to lack of practical experienceand defects of criminal legislation, there are many disputes in mostaspects of the crime, which deeply interests the author.The dissertation is focused on making a relatively completeresearch the constitution of the crime. Referring to the mostpossible latest laws and regulations, the flaws of the currentcriminal responsibility system, and the most typical cases, theauthor finally presents his own opinions and suggestions on the Chinese criminal regulating of securities divulging securities insideinformation,combined with the amendment of securities law in 2005.The dissertation consists of five chapters, as well as theintroduction and the epilogue. Chapter I was mainly about theintroduction of securities divulging securities inside informationcrimes and summarize the rule of the crime. And the development oflegal system against the crime was reviewed, laying a foundation onthe harm of the crime. On the judicial actuality against the crime,the author had analyzed the reason of the fact and drawbacks of theChinese Criminal Code in controlling securities divulging securitiesinside information, and concluded the possible solutions.In Chapter II the author points out the flaws of definition ofthe subjective so not as to apply in practice. The substantialstandard in China should be whether the subject has been in controlof inside information. Since the definition of insiders in China hastoo many problems in terms of logics and subject scope, we shouldproperly expand the coverage of the crime subject according to therelationship of duty and business, based on a wide explanation of theterm"the person who illegally get access to inside information"including the tippee. So the subjective should be classified intolegal insider and illegal insider with the different burden of proof.Chapter III is an analysis of the subjective aspects of the crime.In this section the author points out"on purpose"with wideexplanation should be the necessary factor to constitute divulgingsecurities inside information crime,but for the purpose of benefit.Regarding how to decide whether the subject is on or not,the purposepresumed fault principle should be adopted. But an exception shouldbe made with a certain misunderstanding.Chapter IV is a discussion on the object of the crime by analyzing inside information. The author concludes that theconfidentiality standard and the materiality standard of insideinformation exists disadvantages and flaws,and we can refer to theAmerican substantial disclosure standard and insider informationjudgment principles,adding with standard of authenticity andrelativity.Chapter V was a discussion on the objective aspects of the crimeby analyzing two aspects: inside trading acts and the circumstances,the author makes further analysis to three acts: Divulging,suggesting and re-divulging. The acts could be classified intoillegal divulging and divulging with good intent so as to make sureabout the crime or not. And the different standard level ofsubstantial harm should be introduced into identification of thecrime according to the principal of the criminal law.