On The Civil Liability Of Securities Trading Market Manipulation

Civil liability of security fraud became tbe hottest issue of our security market in 2001. However, tbe regulations about civil liability in current security laws and regulations could not satiate the need of the social practice. This article will expound the liability of rigging the market, which is a kind of fraudulent act. This article consists of six parts.The first part defines the act of rigging the market. The author holds that rigging the market mains the acts that the manipulator carried out by taking advantage of his superiority of capital, information, monopoly status, personal influence and the like to seduce others to sale or buy security in order to achieve his own goal, which is absolutely a-gainst justice, principle of free competition and the law of value.The second part digs into standard of classification, subject and behavior of rigging the market.The third part exjjounds doctrine of liability fixation and constitutive requirements of controlling market. This article holds the opinion that the doctrine of liability fixation should be doctrine of liability for wrongs, and the constitutive requirements include acts of rigging the market, facts of damage, and the causes for act and damage.The forth part states the contradicting causes. The contradicting causes include stabilization, transaction carried out by the infringed being aware of the act of rigging the market and force majesture.The fifth part analyzes the form of liability. The form of liability mainly is compensation for damage. There are three1 kinds of countingmethods of claims, which arc methods of real value, method of variable price, and method of practical seducing.The sixth part put forward legislation suggestions on how to perfect Chinese regulations on civil liability of rigging the market. Suggestions include: defining the thought of legislation of Chinese regulations on civil liability of rigging the market, stipulating the basic principles of civil liability of rigging the market, making it more practical, constructing the system which makes justice accessible to investors.