Research Of The Problems And Approaches Of Civil Liability For Market Manipulation In China

Market manipulation has been rampant, because of the low illegal cost. In other words, person may pay price far less than the benefits gained, because of the lack of civil liability for market manipulation. The newly revised "Securities Act" provides for civil liability for market manipulation in 2005, but only in principle. So there are still many problems in practice, leading to the difficulty in pursing civil liability for market manipulation in China. This article analyses the problems in pursuing civil liability for market manipulation:no clearly stipulating doctrine of liability fixation; not specific regulating the calculating method of the amount of civil compensation; not providing causality; defense of market manipulation being not perfect; civil litigation system being not perfect.The history of stock market in U.S.A is long, and the system is perfect correspondingly. The securities market of Japan and Taiwan began earlier than China. So the article refer to the three countries and regions in order to study from them to improve our relevant laws and regulations about the difficulties in pursing the civil liability for market manipulation.In order to solve the difficulties and protect the interests of small investors, we can do from the following aspects:Clearly stipulating the principle of fault presumption in order to protect the interests of small investors; calculating the compensation from the perspective of the plaintiff to make up for the loss of the plaintiff; putting the causality into transaction causality and loss causality that the existence of trust relationship is most important in proving the transaction causality and the loss causality should be based on the adequate causality theory; clearly providing the defense of the stability operations and being malicious of counterparty; specific adopting representative action system in civil tort action of securities, which should be further improved.