Research On Problems Of Undisclosed Information Trading Crime

In the development process of China’s financial market, a string of illegal criminal activities come out due to the illegal trade of financial products. Particularly, some venal and money-oriented fund managers strive for high illegal profits by way of rat trading behavior, which not only greatly damages the legitimate interests and rights of ordinary trade participants, but also results in the disordered financial regulation and management in China. In the long run, this will exert certain negative influence on the confidence in the revival of market and the stable operation of China’s macro economy. Meanwhile. China is confronted with the high-risk trend that existing civil and administrative laws and regulations are unable to curb such criminal behaviors. Therefore, The Amendment to the Criminal Law of the People s Republic of China (VII) cracks down on such illegal acts through the crime of undisclosed information trading. As a new type of crime, it keeps its constitutive elements controversial. This paper first analyzes meaning and basic implications for this charge of this crime and makes a theoretical elaboration on its basic characteristic. Second, it makes a brief review on consideration, consultation and final establishment of this charge and meanwhile analyzes the severe impairment of rat trading behavior and the attitudes and methods adopted by China Securities Regulatory Commission to crack down on such illegal criminal acts. Third, due to a string of practical problems in the execution of a new charge, this paper combines the judicial interpretations released by the Supreme People’s Procuratorate and the Supreme People’s court and the legal documents issued by Ministry of Public Security. which attempts to make an analysis about the aspects, such as the scope of undisclosed information, understanding about deregulation, short-selling market behavior, utilization relevancy of undisclosed information, and possible ambiguity of "gravity of the circumstances", through integrating theory of criminal law with juridical practice. For the specific scope of undisclosed information, this paper attempts to makes an exploration from the perspective of purpose of legislation in combination with the scope of inside information as well as makes a comprehensive definition through integrating with three characteristics of undisclosed information. For the judgment about the relevancy between trading activities and undisclosed information, this paper integrates theoretical viewpoints and practical methods. Through analyzing specific cases, this paper presents specific judgment standards for "prior to" and "simultaneous’", which provides referential basis for the operation of specific cases. For "the blank facts about a crime"in criminal laws identified by deregulation. the regulation of deregulation including but not limited to national regulation is analyzed from four aspects including original intention of charge establishment, definiteness of criminal law. field of charge regulation, and property of industrial norms. Aimed at the ambiguity of invoking laws and regulations of "gravity of the circumstances", this paper tries to gain narrow understanding about "gravity of the circumstances" in this crime under the prerequisite of defining it as one of the essential constitutive elements of crime from multiple perspectives, such as principle of suiting punishment to crime. the accused innocent until proven guilty, the application of systematic interpretation methods. The narrow understanding is limited to average gravity of the circumstance but excludes special gravity of the circumstance. Finally, specific to the severe punishment standards and impractical problems for the clauses of "gravity of the circumstances" in present practice. this paper puts forward some suggestions. Besides. the legislative amount shall become proactive by collecting and analyzing samples in wide range. With miscellaneous provisions eliminated. the right of judgment for "gravity of the circumstances or special gravity of the circumstances" shall be delegated to China Securities Regulatorv Commission.