China's Securities Civil Liability For Insider Trading, Research,

Insider trading is an illegal activity that the person who makes use of the inside message to transact the securities. Insider trading breaches securities transaction rule of open,justice and fair and disorders the securities transaction system. It seriously harms the society's order. Although the security law of 1998 of our country ruled that insider trading was forbidden, and the revised edition of security law in 2005 adds that if the act of insider trading will have harmed the investor's profits, the actor will compensate the loss of the investor. But this rule is too abstract to apply in practice. At the same time there are great diverges in the academe about how to compensate the investor who suffers from the insider trading and how to distribute the burden of proof.This article uses the comparing method to discuss the question about civil compensation of insider trading by the numbers. And the writer wants to bring up some suggestions to help our country perfect the related regulation and to protect the investor harmed by the insider trading.First of all, the author investigates the research fruits about the insider trading and describes the concept,character and the important documents of inside trading generally.Secondly, the author compares the insider trading compensation system of the main countries abroad and the TAIWAN area of our country and generalizes the characters of each and brings forward to a new calculate method about the insider trading compensation. The author also does some researches about probative burden and the distribution of it in the insider trading.Last, this article analyses the shortage of our security law about civil compensation system on insider trading and brings up material suggestion on legislation based on the development statue of our security market and abroad legislation experiences.The most remarkable features of the dissertation consist of:The first is that this article brings forward to a new method of computing the loss of the investor who suffers in the insider trading.The second is that this article figures that the convert of onus probandi is not the generic principle. The justice should distribute the burden of prove reasonablyaccording to the prove ability of the two sides in idiographic case.The third is that in order to promote the legislation and judge practice this article advances material legislation suggestion. And comparing different civil liability systems of insider trading, this article anatomies the shortage of the civil liability of insider trading of our country.