Research On Civil Action For Damages Relating To Securities Insider Trading

After having experienced20years rapid growth, Chinese securities market hasbecome a vital driving force in promoting national economic high-speed development.However, it is also an undeniable fact that civil infringement of insider trading hasbecome increasingly rampant, not only causing market disorder but impairinginvestors’ legitimate rights and interests. Without investors, the market will bewater without a source, a tree without roots. In order to maximize the core function ofsecurities market which rationally allocates social resource, it is extremely significantto provide the investors with an effective method to safeguard their rights so as torestore their confidence in investing in the securities. Compared to criminal sanctionsand administrative penalties, civil action for damages is undoubtedly the most directand important channel for investors to seek judicial protection and reliefs. Regrettably,however, for the lack of a complete, rational and scientific civil action system fordamages relating to securities insider trading, investors’ rights and interests are hardto be truly, effectively and efficiently protected. Therefore, after studying andanalyzing the relevant advanced civil action system for damages from developedcountries, and fully taking into account the unique national conditions of the presentchina, the thesis provides a reference for building our own special civil action systemfor damages relating to securities. Full text is divided into four chapters:The first chapter is an overview. This chapter begins by an introduction of a real case which reflects some of theexisting problems under the current china’s legislation and judicial practice regardingcivil action for damages relating to securities insider trading. Furthermore, severalbasic concepts studied in this thesis are elaborated, including the concept and harm ofsecurities insider trading as well as the concept and characteristics of civil action fordamages. At last, this chapter highlights the functions and values of the civil action fordamages aiming to provide a target value and orientation for a system design.The second chapter refers to comparative research with regard to civil action fordamages relating to securities insider trading.This chapter is divided into two main parts. The first part provides a theoreticaland practical analysis about the civil liability constitution of insider trading and itsscope of subject. The other part focuses on procedural issues. The different forms ofaction in United States, Taiwan, and Germany are deeply compared and analyzed,which provides a reference for relevant system design in our country.The third chapter refers to the analysis of the development and status of china’scivil action for damages relating to securities insider trading.This chapter firstly introduces the historical development of china’s civil actionfor damages relating to securities insider trading, and then gives an analysis andevaluation of its legislative and judicial status. The status of pre-procedure, test ofcausation and form of action are primarily and objectively evaluated.The fourth chapter refers to a form design of securities civil action for damages.This chapter creatively puts forward legislative proposals to build a classexemplary action, taking into account the china’s unique national conditions, and fullyconsidering and absorbing the different forms of action with characteristics all overthe world. In addition, a detailed analysis and elaboration regarding theoreticalcompatibility and practical feasibility are given. Hopefully, this class exemplaryaction will be beneficial for social harmony and private rights reliefs.