Research On The Prevention System Against Inside Trading In China's Stock Markets

China's stock markets has developed more than 20 years, which is entering the rapid development of the 21st century, however, inside trading also has become a major issue in our country stock markets, the discussion on how to regulate the inside trading system's flaw and governance also has been Chinese and foreign stock markets'focus. Investors activing in stock markets abhors inside trading, in the meantime,they are also longing for inside information so as to reap huge profits,this phenomenon is worth pondering. Inside trading not only challenges the principles of openness,fairness and impartiality of stock markets, cutting the confidence of investors in stock markets,but also may results in the formation of the bubble economy, affecting the development of entire market economy. This article explores the reasons for the persistence of this phenomenon, and strive to build a sound legal prevention system, on the basis of the advanced experience from other countries and regions, in order to improve China's securities legislation.This paper mainly uses the methods of comparative analysis, historical analysis methods and so on, to study the basic legal issues of insider trading studied. After describing the situation of the securities market of the insider trading at home and abroad, this paper carried out the in-depth analysis of the current insider trading laws in China's stock markets,in order to prevent system problems.And on how to prevent insider trading and improve China's stock markets,this paper also provided the proposed preventive system, with a view to play a guiding role in the practice of China's stock markets. This article separates the preventive system of insider trading as a sole chapter,which is different from other articles.The main text of this article is divided four parts, including the stock markets inside trading's basic question analysis, anti-inside trading legislation's domestic and foreign inspections, the preventive legal regime's present situation analysis of inside trading in our country, the preventive legal regime's perfect tentative plan of inside trading in our country.The first part is through the analysis of insider trading basic questions to clarify insider trading concept, analysis of insider trade in all its elements and the analysis of insider trading causes, for insider trading prevention and regulatory direction. I believe that regulation of insider trading combining punishment and prevention should be taken in case-based strategy, the focus of this paper lies in the insider trading of preventive discussion of the legal system.The second part is anti-inside trading legislation's domestic and foreign inspections, through national overview of the status of insider trading legislation come to increasingly stringent insider trading legislation of international development trend, points out the direction for our country inside trading legislation's development.Learn from countries, especially the U.S. insider trading legislation, advanced technology and experience, in order to better regulate China's stock markets provides an example.The third part is the preventive legal regime's present situation analysis of inside trading in our country,through the description and analysis to the information disclosure system, the report of insider ownership, share transfer reporting system, short-term trading prohibition regime, securities professional organizations and their staff constraints and limitations of the system, the information segregation system insider trading and other preventive legal system, has made the upholstery for the preventive institutional framework's consummation.The fourth part is also the final part is the key elaboration part of this article, the front analysis elaboration lay the foundation for improving the prevention system against inside trading consummates. Through the establishment of comprehensive, strict and standardized information disclosure system, the report of insider ownership, share transfer reporting system, short-term trading prohibition regime, the information system of apartheid-the system of Chinese walls to build a sound system of preventive system, so that insider trading generated by the system loss of soil, so that China's stock markets to be healthy and rapid development.