On The Determination Of The Civil Liability Of Securities Insider Trading

National People's Congress has revised securities law in 2005 with amendments of putting civil liability into the insider trading rules. Therefore, China has established a legal framework from primitive criminal and administrative liabilities to a wider scale of civil liability involved in accordance to benefit the investors and the stock exchange market.However, the added regulation is not enough to cover all the challenges and problems in the practice. Securities have been new to many Chinese law makers as well as scholars, thus there seems little consensus to the application of the rules and how to improve the surveillance of the market. Without experience of stock cases, Chinese judges are helpless in handling with the securities civil liability cases at present.The purpose of this article is to find out the principles of insider trading. With analyze the data from developed countries where insider trade's civil prosecutions have been established for a long time, the article focus on the basic elements of insider trade including litigator, secret information, insider, insider trading, damages, causality and subjective opinion. Considering all the facts mentioned above, a judge could deal with the securities cases appropriately.