Behavior And Regulation Of Securities Fraud

Since China's securities market re-opened 12 years ago, the country had 1,200 listed companies and 68 million registered investors, and the stock market was worth 4.3 trillion yuan by October last year. However, at the present time, China securities market is still a developing market though it has expanded so rapidly. At the same time, securities fraud gradually appeared with the growth of the securities market, which not only harms the interests of investors with small and medium-sized investments, but also has enormous influence and obstructs the development of China's stock market.To crackdown on securities fraud, almost every country has set up particular institutions and offered stronger legal support. Nevertheless, securities fraud in China is still in existence because of the imperfection of regulations and laws. Therefore, consummating regulations on securities fraud is effective to set up a stock market featuring a fine investment environment.This thesis analyzes and discusses on the cause of securities fraud and its regulations.Chapter one offers the definition of securities fraud, and then makes a brief view of it in China. Fraud is defined to be "an intentional perversion of truth" or a "false misrepresentation of a matter of fact" which induces another person to "part with some valuable thing belonging to him or to surrender a legal right". It causes investors, particularly those with small and medium-sized investments, society, country, to incur losses, and has an enormous impact on the market, dampening seriously the confidence and participation enthusiasm of medium and small investors in the security market. Also, it may cause the financial crisis and economic crisis. Since the securities fraud is thecriminal offence, what are the reasons for securities fraud? The imperfection of laws about securities fraud is the basic reason.Chapter two analyzes the countermeasure against the securities fraud, namely strengthens securities regulation. Because the securities markets of western countries develop relatively early, the introduction of American securities regulation is helpful to perfect regulation of our country. Then, it analyzes the securities regulation system of China. After the Securities Law and various related laws and regulations were made available, rules have formed in related aspects, As a result, securities fraud is kept within limits at a certain degree. Chapter three analyzes the existing problem at present on securities regulation of our country in depth, and gives some suggestions on how to perfect securities regulation. Then, how to perfect securities regulation? Foreign theory and experience about securities regulation are worth drawing lessons from. However, there are special economic environments in our country, our government has different features from the western countries. At first, the regulations have been especially made to protect the interests of individual investors, because they are usually at a disadvantage when hit by stock trading fraud, and their morale and confidence are key to the development of the country's securities market. Secondly, it is necessary to adjust the company structure. Because of historical reasons, the proportion of state-owned shares is too high, consequently, it is apt to produce the securities fraud. How to reduce state-owned shares is also important. Finally, information disclosure system should be executed strictly so that securities regulation would reach the anticipated result...