On Civil Liability For Stock Market Manipulation Behavior

In the history of the development of stock markets in many countries, various kinds of frauds emerge endlessly. The stock market in our country has been established for over ten years. With the fast growth, there are also some frauds. Among them, market manipulation is one of the most typical and frequent frauds. How to protect the interests of middle and small investors and how to prohibit market manipulation is an obstacle in constructing china's securities law. From the foreign experiences, one of the effective ways to prevent market manipulation is to punish severely and to apply administrative, criminal and civil sanctions together.In present china's securities law, the public law is quite mature. It has stipulated the administrative and criminal liabilities of market manipulation. While the private law in securities area is quite weak and the remedies of the victims can't be effectively recovered. It will undoubtedly be contradicted to the main purposes of china's securities law.In the research area, the focus of the research on market manipulation is mainly on the act itself but seldomly on the civil liability of market manipulation. There is no particular book on this subject and the number of articles about it is also little.With the publish of "the Notice on several questions of the Civil Tort Disputes causing by the Mispresentation in the Stock Market" in 2002 and "the Regulations on the Civil Remedies causing by the Mispresentation in the stock market" in 2003, the framework of the civil liabilities system on securities fraud has been established.This article first introduces the frequency and harm of the market manipulation in China's stock market, points out the importance and urgency of regulating market manipulation. Then the article tries to give some advice on the establishment of the civil liability and remedy mechanism in China's stock market by reviewing the theories and cases in foreign securities laws and by analyzing and discussing the concept, types, the nature of the civil liability, the comprising element, the causation and remedy.