Research On The Civil Damage Practice Issues Of Insider Trading In China

Insider trading behavior destroied the trade order of the stock market in our country to acertain extent, at the same time, took some certain economic losses to investors, therebyreduced the confidence of the investors to invest in the securities market.Our SecuritiesRegulatory Commission is take a zero tolerance attitude to insider trading,and always crackdown severely and prevention, just because of its relative invisibility features, hard obtainevidence, qualitative difficult is the two major difficulties to crack down insider dealing, themain channel of obtain evidence is regulatory discovery and media exposure. Due to thecharacteristics of the insider trading cases, resulting in the insider trading behavior indentifieddifficulties. So, against the insider trading civil cases is only a few.The Securities Law and the securities regulatory authorities has been focus onspecification the Insider trading behavior, especially the "Securities Law" clearly definedcivil liability for insider trading, but is just some of the provisions of principle, so there arestill some problem is not clear, is not conducive to a specific practical application. Andpromulgation issued "explanation" is just about the handling of insider trading, disclosure ofinside information in criminal cases the specific application of the law a number of issues in2012, is only about the provisions of the criminal aspects of insider trading,not involvingcivil compensation.So,some experts all hope for introduction a judicial interpretation aboutthe civil compensation of insider trading as soon as possible to solve many difficultiesencountered in the practice of civil compensation.This article,draw on the basis of relevant legislative and practical experience provisionsabout the insider trading civil damages in developed countries, to protect the interests of theinjured investors for the purpose,combined with our country’s actual situation, put forwardsome specific methods suited to practical problem of China’s insider trading civil damages.This article is divided into four parts, expect the introduction and conclusion.Part One: introduction the basic theory of insider trading. The concept of insider trading,identified of Insider trading civil damages and qualitative of insider trading civil liability fordamages.Part Two: this part is mainly that the problem of qualification the plaintiff and defendantabout insider trading civil liability.Part Three: through draw on the practical experiences of some developed counties on theproof of the causal of insider trading civil damage, put forward perfect advise about theburden of proof of the insider trading civil causality in our country.Part Four: through analysis the related methods and practical experience ahout determinethe amount of insider trading civil damages in The United States and China’s Taiwan region,put forward the applicable calculation method about the insider trading civil in our country.