Theory Of Securities Market False Statement Civil Liability

Misrepresentation is an illegal behavior often happens in the stock market and damages the interests of numerous investors. Compared to other countries, China has the securities legislations later. Although in the legislative process we drew on the experience of the United States and other developed capital markets, Chinese Securities laws pay more attention on administrative and criminal liability, ignore the civil liability. Therefore, our protection of the interest of investors is smaller than the United States and other developed countries.Civil responsibility for misrepresentation is the object of the essay, and "tort liability" is the core. This essay is organized with the nature of misrepresentation the composition of misrepresentation and the form of litigation. Based on these aspects, this essay analyze the defects of misrepresentation in Chinese Securities laws and the idea of improve the compensation system of China.The main body of the essay consists of three chapters:the determination of nature of the civil responsibility for misrepresentation, the essentials of civil responsibility of misrepresentation, the way of calculating the loss and forms of litigation. The author will give some views and recommendations by analyzing the defects of Chinese Securities legislations.In the first chapter, pointing out that the civil responsibility for misrepresentation is a tort liability and the action of misrepresentation is a special tort action by contracting several major views of nature of civil for misrepresentation. The tort liability can protect the interests of investors in the greatest extent and the procedure of legislation is easier.In the second chapter, comparing the essentials of civil responsibility of misrepresentation between China and the United States and elaborates the four questions. First, pointing out the rationality of making SFC, the media,other institutions and individuals as the subjects of civil liability for misrepresentation. Second, elaborating the different liability principle which applied to different subjects. Third, elaborating standard of martially the internal standard of misrepresentation and suggesting that China should learn Investor decision-making standard from the United States. Finally, analyzing the causal relationship between misrepresentations and the loss of the investors to point out the storages of identifying the causality in China, and also suggests that learn the United States to distinguish between the loss of a causal relationship with the transaction causality. In the third chapter, the author suggests that China should expand the range of compensation by comparing the scope of compensation between China and the United States. Then, elaborating the selection of forms of litigation and analyzing that representative litigation system cannot protect the interests of investors in practice and it is also difficult to organize the representative litigation. The author proposed that introduced in the securities class action to protect the investors.