Discusses The Stock Market Because Of The False Statement Shall Bear Civil Liability

Misrepresentation in the securities market contains many important topics. The paper mainly focuses on following issues: parties liable in relation to misrepresentation, constitutive requirements of the civil liabilities and civil liability system in securities. Accompanying with other countries theoretic discussions in misrepresentation in securities market, the author puts forward some ideas and advice on perfecting the rules for the securities market.As one of the infringements, misrepresentation contains false recordation, misleading representation and material omission. Each act breaks the law. In chapter 1, the paper will summarize main misrepresentation, sketch out the definition of it, and classify it into three kinds. The author will reify it by introducing the abstract implication and integrating the Zheng Bai Wen Case and Yin Guang Xia Case.In chapter 2, according to the different functions during the build-up, running and expansion of a listed company, parties liable in relation to misrepresentation will be analyzed and be classified into four kinds, (1) initiators, holding company and other actual controllers, issuers, or listed company ; (2) consortium of underwriters, recommenders of securities listing; (3) directors, supervisors and managers of the above; (4) professional agencies and direct persons liable in the agencies; (5) other persons liable.The aim of this paper is to focus on the civil liabilities due to the misrepresentation in the securities market and to elaborate the constitutive requirements of the civil liabilities. The paper also refers to the existing rules and laws, transplant the relative provisions in foreign countries that suit China, incorporates suitable relative provisions and offer the author's own opinion as how to perfect our securities law. So chapter 3 is the emphasis of this paper. By referring to and in America, the author will work out the constitutive requirements of the civil liabilities, i.e. determining misrepresentation, faults and causality. In addition, how to determine misrepresentation is analyzed concretely. Also, the example of CPA will further the understanding of the constitutive requirements of the civil liabilities.Indeed, to protect the investors, the affirmation of misrepresentation is the premise. Still, it is crucial that how to give the investors sufficient litigious right and to perfect the fulfillment system of civil compensation. Limited to the length, the paper studies them primarily, and put forward the ideas and advice. Namely, on forms of action, class action is absorbed reasonably. In addition, the civilcompensation may as well be perfected by establishing risk and prompting fund.The securities market in China has achieved remarkable results and is drawing world attention, and various rules and regulations for the securities market are being improved step by step. However, investors who have sustained a substantial loss or are even reduced to poverty and ruin, are unable to have resort to legal remedy, before civil liability system in securities market hasn't been established and perfected. Besides, wrongful acts or violations of regulations are difficult to be supervised and deterred effectively. Now, there exist a lot of problems in the securities market, and they are related directly to the imperfection of the civil liability system. If things go on in this way, we may have to worry about the prospects of our securities market. In particular with China's entering in WTO and the need of the further opening of securities market, the building up and perfection of the civil liability in securities market become more urgent and more important.