Research On The Causation Of False Statement In Securities Market

False statement is the most common tort in securities market,It damages investor's interest seriously,Our securities law regulations the first clause chearly estabished the purpose"ptotection the legitimate rights of investor",but the investors are still hard to get civil compensation with action, one of the main reason is whether the causality existed or not between false statement and investor's damage.Therefore,it is particularly import to establish a perfect system of causality.It can not only to provide strong legal backing for the majority of the damaged investors,but also to strike against the securities froud,promote the healthy development of the securities market.The article introduced the difficulty encountered by theory of causation of tort law in securities market and integrating with the two verdicts of supreme count in China,analyzed the bone of contention in the litigation of the securities market through the case of ZongHengGuoJi, Through tetailed introduced the relevant theories in America and specific provisions of our law, in order to put some the good standards for the similar cases in the future.This article is composed of three parts: the first part introduces the backgrounds and rulings of the first securities civil case called ZongHengGuoJi.Put two of the arguments.basic aspect of ZongHengGuoJi case facts, the case leads to two major bone of contention. First, the plaintiff's investment decision is whether the plaintiff investors to make representations because of the trust, that the existence of transaction causation. The second is whether the loss of investors caused by misrepresentation, that is, whether there is loss causation. The second part of the analysis of civil liability for false statements to identify securities transaction causation. First, by outlining the concept of transaction causation, characteristics, properties, etc. next to their clearly defined, followed by the system of civil liability for false statements described the U.S. Securities and identification of causal relationship between trade theory, focusing on trust and the presumption of fraud, market theory, and its make the appropriate legal evaluation. Again through the analysis of the traditional theory of causation identified, a description of China's judicial interpretation, that China's "rule" learn from the U.S. "constructive trust" and "market fraud theory", reducing the burden of proof on investors, but also pointed out "requirement" in the causation of the transaction identified deficiencies, and to the perfection of their views. The third part of the analysis of civil liability for false statements to securities losses recognized causal relationship. First, by outlining the concept of loss causation, characteristics, properties, etc. next to their clearly defined, followed by the systematic introduction to the U.S. Securities and civil liability for false statements identified loss causation theory, focusing on three representative theories, and accordingly analysis of their evaluation. Re-analysis of the best in learning theory and the United States after the formation of our own innovative misrepresentation civil liability for the identification of loss causation rules, in particular, analysis of the risk factors involved in this particular system is important, that in the Jiangsu High Court hearing this case the contribution and shortcomings, and put forward their own views of sound.