Fund Rat Trading Criminal Regulation In China

Since the first fund Rat Trading Tang Jian Case appeared in2007,the fund company’sintegrity is being questioned and the investors have suffered losses, so some investors go pale atthe name of Rat Trading. Since then, the problem of Fund "Rat Trading” gradually is being takenseriously, the theorists have done the research and the legislature have passed the “Criminal LawAmendment (7)"by the use of undisclosed information dealing offense to regulate fund "RatTrading”.Now, there are five main views about the Rat Trading which are overlaps and competing, tosome extent, they reveal the nature of the Fund "Rat Trading, but there is still some deviation.The paper redefines the concept of the "Rat Trading” on the basis and reveals its behavioralcharacteristics. On the other hand, the paper analyzes the four doctrine about the nature of RatTrading (personal trading, while trading, insider trading and front-running) and think the RatTrading closer to front-running. Rat Trading mainly includes three kinds, namely low positionsand the use of funds to prop up share prices to the trading of securities, the use of undisclosedfund investment information directly or indirectly engaged in securities trading activities. Thepaper compares with insider information, undisclosed information and undisclosed fundinformation and analyzes the elements of severe violation and illegal income about the RatTrading.Academia stimulates highly contentious debates on the accusation of Rat Trading. Thispaper focuses on the analysis of the crime of using undisclosed information trading, the crime ofinsider trading, the crime of illegal use of funds, breach of entrusted property and compares thesimilarities and differences among them. So the paper thinks it that there isn’t one-to-onecorrespondence among these crimes but there is a cross-and competing relationship in RatTrading, Therefore, it needs to distinguish the specific circumstances to affirm Rat Trading Crime.Moreover, it analyzes the standard of completed and attempted on Rat Trading Crime andcomments on three cases of Fund Rat Trading Crime. According to the problems in the case, itpoints out the deficiencies of the current criminal responsibility and puts forward suggestions forimprovement.