A Comparative Study Of Civil Liability Determination In Securities Insider Trading

The stock market has been hailed as the "barometer" of economic. Althoughcompared to the west Chinese securities market has started a little late, after havingexperienced20years rapid growth, Chinese securities market has become a vitaldriving force in promoting national economic high-speed development. But at thesame time, insider trading as one of the chronic diseases has become increasinglyrampant, not only causing market disorder but impairing investors’legitimate rightsand interests. In order to keep the stock market public,equal and fair,and protect theinvestors, compared to criminal sanctions, civil action for damages is undoubtedlythe most direct and important channel for investors to seek judicial protection andreliefs. As one of our important neighbors, Japanese stock market is more advancedthan ours, the laws and regulations is also more perfect. This paper aims to studycomparison of Chinese and Japanese of the Securities insider trading civil liabilityrecognized, focus on the calculate of Liability amount. However, study the laws andcases of Japan, after all, the purpose is to promote Chinese securities market to belegalization and standardization, and to improve our insider trading civil liability legalsystem. To solve the calculation of the amount of civil liability for insider trading, inorder to make our legal system to be reference and inspiration. During this paperwriting, the Guangda door was happened, so research on my paper has both theoreticvalue and practical meaning.Full text is divided into four chapters: the first chapter is an overview of the civilliability of the inside trading. This chapter begins by an introduction of several basicconcepts studied in this thesis are elaborated, including the concept and harm ofsecurities insider trading as well as the concept and characteristics of civil action fordamages. At last, this chapter highlights the meaning of this research from juridicalpractice, economic society and actual cases.The second chapter is about the way of identification. The first part describedtheories about the civil liability of each country or region，especially introduce the laws and regulations of the USA and Taiwan. The second part is the establishment ofcivil liabilities of insider trading is discussed from the following aspects: definition ofinsider trading, civil litigants, fault rule and so on.The third chapter is about the damage calculation. This is the key part of theresearch of civil liability cognizance, firstly to determine the amount of calculationprinciple, and then expounds the current situation of legal provisions for the content inChina, then from both Chinese and Japanese situation to state why we chose Japan tostudy, then to analysis the law of Japan, and through a number of cases summarized inJapan followed by the civil compensation cases formulas and standards.The last chapter is the enlightenment for our country. The case of Wanfu Shenke’streatment is more appropriate, Ping An Securities Investor Protection Fund way toopen a new way of compensation. It is instructive significance for the future of thiscase. Finally, analysis of the enlightenment past cases in Japan to China, this can beintroduced into Japan to provide effective suggestions for China to resolve the issue ofcompensation.