Research On The Civil Compensation Of Misrepresentation In Chinese Securities Market

Information Disclosure is the core system of the securities market, purpose toovercome the information asymmetry and enable investors to make rational choices inthe full of knowledge.Misrepresentation violates the Information Disclosure, which seriously damagedthe interests of investors. Civil Compensation is the most effective and direct meansto fill the loss of investors and to maintain the confidence of investors on thesecurities market. At the same time, Civil Compensation improved the illegal cost.Because of traditional influence, our country has always put more importance onpunishment. Thus, legislation on Civil Compensation of Misrepresentation hasexperienced many difficulties. So far, China has successively issued Company Law,Securities Law and so on. Legislation on civil compensation of Misrepresentationopens the door of judicial relief for investors, many investors embarked on the rightsof way of the action. However, in the process of seeking civil compensation, Lossescognizance difficulty, Procedural obstacles and difficulty in enforcement appear. Theinterests of investors are not fully protected.In order to implement the law and effectively protect the interests of investors, sogive some suggestions and countermeasures from entities to procedures. Hoping itwill be helpful to build the system of Civil Compensation of Misrepresentation.