The Research On The Legal Supervision On The Short-term Hot-money Manipulation

The detriment of securities market manipulation is remarkable as it seriously impacts the securities regulatory system. With the development of China's securities market and improvement of regulatory measures, the traditional long-term"banker" mode is being replaced by short-term"hot money" manipulation gradually. This kind of manipulation, which is quite different from the traditional one, is a strike against the vulnerability of China's securities regulation, affecting normal financial management order. Therefore, we need to introduce and work out more targeted regulatory and monitoring methods.Using legal, economic and comparative analysis comprehensively, this paper, based on the discussion of the concept, characteristics and regulatory necessities of short-term"hot money" manipulation, analyzes the perfection of China's relevant laws and regulations and regulatory systems and also makes recommendations accordingly, taking the legislation and regulation of short-term"hot money" manipulation as the focus while the influence of this manipulation on our nation's securities market, economy and society, China's legal and regulatory status and experience in developed countries and regions as a reference.In addition to the introduction and conclusion, the paper is divided into four parts.By defining the"hot money" and short-term manipulation, the first part outlines the short-term"hot money" manipulation. Focusing on the features of"hot money" and the ways of short-term manipulation, and its comparison with the traditional"banker" mode, the paper explicates the connotation and denotation, constituents and hazards to society of the short-term"hot money" manipulation.The second part discusses the need for legal regulation on short-term"hot money" manipulation. Economically speaking, based on the market failure theory, this is the objective existence of capital market failure as well as an objective requirement of economy for capital market to function well. Legallyspeaking, this is also a requirement to ensure the security value of laws and to protect national financial and economic safety. The third part discusses the legislation and regulation of various countries and regions all over the world. The paper summarizes the principles and methods about how to regulate short-term market manipulation which can be a reference for China from a legal and practical perspective with examples of America, Britain and Taiwan.The fourth part expounds China's definition and regulatory status of short-term "hot money" manipulation based on securities legislation and practice. As for loopholes in regulatory system, based on practical experience of other countries, the paper makes comments and suggestions, which is also the ultimate goal of this paper, on perfection regulatory system against "hot money" short-term manipulation, mainly on the legislation, enforcement, monitoring, penalties and transactions.