Evaluation Of Loss Of Civil Compensation In False Statement

With the rapid development of economy in China, securities market has become animportant financing and investment platform, which plays an important role in financing andinvestment activities for the main body of the various types of financial investment. However,due to missing a variety of supporting systems, illegal activities of securities market in Chinahas not been effectively governed, which made phenomenon of false statements arise moreand more. Not only do these directly violate the interests of the majority of investors andstrike at the confidence of the investors, but also affect the financial investment environmentin China and make serious harm to the entire capital market, even cause harm to the financialsystem and economic system of the country as a whole. So, how to protect investorseffectively is worth us having to consider. Dealing with a false statement in civil casessuccessfully, will help to curb the existence of bad behavior of stock market, protect thelegitimate rights and interests of investors and improve the construction of the rule of law ofsecurities market in China.In China, as the time of establishment of the stock market is not long,so the judiciary donot have much practical experience in dealing with stock market-related cases. At thebeginning, investor harmed by the false statement and appealing to the Court can require littlesupport from the Court for protecting their interests. Besides the absence of legislation theidentification of investment loss is another difficult problem to solve in false statements cases.Until early2003,"Supreme People’s Court on the trial of the securities markets Civil DamagesCases Arising from False Statement" implemented, which provide a legal basis to solve suchcases yet. However, imperfections in it are inevitable, because certain Regulations, after all, isjust a requirement by the Supreme Court. So a lot of problems in the judicial practice are leftto resolve by the judge and the parties. Based on the specific case, this article analyzes andexplores some of the problems of loss identified in false statement cases in the judicialpractice, and the author proposes his own ideas about these problems in order to supply some help to deal with these problems.This article is divided into three parts. The first part is about the basic point and the coreproblem. This part analyzes the core problem through the introduction of Dong fangElectronics case. The second part is about the core issue of the case, including the followingfour aspects: identification of the liable party, identification of the implementation date,disclosure day and the base date, the impact to the identification of loss by the systematic risk,and calculation about losses of investors; The third part introduces some thoughts aboutidentification of loss in false statement cases of Securities civil compensation.