| China security market has developed rapidly in last 10 years. With more energy, it has been the part of China economic operation progressively and becomes an indispensable process. While, due to lack of transparency in market, inadequacy of market system, there are many problems exposed specially for the insider dealing which can not be totally forbidden.Recent years, equity division reform has achieve success in our country, the times of global transit has launched. While the global transit environment itself can not be a system to restrict the insider dealing. To certain extend, due to the share held by substantial shareholders of listed company turns to be the circulating shares which makes it possible that there are more motivations to do the insider dealing and market manipulation.Han Xiao Steel Structure was listed as top 1 case by CSRC in this year whose stock price hit the daily increase limit continuously which may due to its early releasing of huge amount contract signed with Angola. While in the meantime, in A share market, the price of the stock, which is related to security agent lend hull, assets injection, increased rapidly although such information has not been issued formally. Even if there is a sound proposal of cash/stock dividend, the price of the stock will start to increase in advance. As a common phenomena in market, without taking any actions to insider dealing, such activity must be inundant progressively and will hurt the order of China security market even the whole finance market directly. Consequently, to strengthen the research of supervision on the insider dealing is very meaningful.Insider dealing means that with the purpose to obtain the benefit or avoid the loss, insider person or other person who utilize the insider information or suggest other person to use the insider information to buy and sell securities. Since insider dealing is to use the information which is not available to public to gain the benefit, it is an unfair activity which is also forbidden in the security laws all around the world.Insider dealing as a by product, exits widely in the security market all around the world. It is composed by three elements: insider person, insider information and insider dealing activity and can be classified into four models: insider person use the information to do the deal directly; insider person suggests others or releases information to others; communicate the information into multi-level; derive from merge.By comparison the principal of law set up and the execution process toward insider dealing between our capital market and that of mature western, it is not difficult to find that for our country, there are many weaknesses existed in this area, no matter the reasonableness of evidence provided and severity of hit the criminal and the ensuring of policy for the law execution are all falling behind. The problems existed in related laws and regulations need to be fixed urgently, the supervision method and law execution need to be strengthened. The totally different treatment result for insider dealing of IBM merged Lotus in USA and South Security case in China is a strong evidence to support this point.Insider dealing is a worldwide problem, we shall insist the principle of "Laws and regulations shall be compliant; Execution of law shall be strictly" and enhance the strength of law execution which can make it possible to prevent the flooding of insider dealing in our security market so that the market can develop healthily. The study includes the description of insider dealing's definition, elements, behavior models, law system and law execution; discussing the problems existed in the insider dealing supervision by reviewing current status of our security market; some suggestions to strengthen insider dealing supervision from the point of law built up, law execution and other mature capital market experience sharing. Hope this study will have some positive effect on the healthy development of the market and adequate supervision on the insider dealing. |
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