On The Civil Liability Of Insider Trading In China

Insider trading, as use insider information in trading securities, is a serious violation against the stock market. China's current laws affirmed insider trading can be actionable, but still have no specific provisions to instruct operation in practice. Therefore, seeking the civil liability of insiders is difficult. In order to protect the interests of investors effectively, China should learn from the experience of other countries, set up a workable system to regulate civil liability of insiders. This paper is divided into five parts.Part one has explained the definition of insider trading by analyzing the insider, insider information and insider trading act, which based on the premise of excluding short-term transactions from insider trading.Part two focus on the character of civil liability of insider trading.Part three has analyzed the constitutive elements of civil liability of insiders trading by discussing three issues including the consequence of damages, causal relationship and wrong of intent.Part four focus on the right of seeking civil remedies from insider. Four specific issues, including the obligor of compensation, oblige of remedy, the scope of compensation and loss calculation, the limitation of action, was discussed.Part five has provided a feasible litigation mechanism to deal with the civil litigation about insider trading, through analyzing cases handling, jurisdiction and litigation form.