On Manipulation Of Stock Market Behavior And Its Civil Liability

It is universally acknowledged that violation of securities law may give rise to civil liabilities. Amusingly, it is not until recently that Chinese scholars as well as the people in the beat begin to realize this point and the issue of civil liabilities in relation to the securities market becomes a rising concern. People may have witnessed the pages and pages of elaboration on this issue in various publications. However, it may be safe to say that the civil liabilities arising from the manipulation of securities market remain a forbidden domain on which no academic has made a full and profound research. The author feels obliged to shoulder this commitment and thus set the theoretical exploration of civil liabilities of manipulators as the gist of the thesis.The thesis consists of six chapters. In order to formulate the concept of manipulative action, the first chapter makes a full analysis of both the literal meanings of those similar words such as manipulation and operation, and their commonsense meanings in the commercial context. To the author's surprise, the word manipulation has been often misused in the situations where a legal operation is involved. This compels the author to re-assess and criticize the definitions offered by the researchers so far to the term securities-market-related manipulative action. The author labels the different definitions with a proper name indicating a different school of theory and puts forward his own definition of manipulative action in securities market.In the subsequent three chapters, the author outlines the types of manipulation as set forth in the relevant law, summarizes the material conditions a manipulator is usually required to meet for the purpose of manipulating the securities market price and answers which market participant is likely to be a manipulator.In the fifth chapter, the author argues that the investor's pure economic interest is the very right injured by the manipulator as a result of manipulating securities market. Previously, people merely found theloss of order caused by the event of market manipulation and only recognized the injury to shareholder's right. This produced a short supply of adequate protection to the investor and presented a practical harm to the sustainable development of securities market.The sixth chapter mainly discusses the civil liabilities arising from manipulation. The legal principle of imposition of liability, the legal basis for a claim for damages and the possible remedies the law will provide are covered. To guarantee recovery of compensation, the author urges our courts to allow class action to be a form of procedural remedy when the case involves a large number of claimants with questions of law or fact common to the class.