Stock Market System Of Financial Fraud Liability

In China, financial fraud and financial face changing before and after the listing of public companies still happen despite repeated prohibition. The initial main board market and the small and medium-sized enterprises board face with such problems, and the new growth enterprises market is not out of this dilemma as well. The financial fraud case of WANFU BIOTECHLOGY has alarmed bell for the information authenticity of growth enterprises market. Although the foreign countries also have the same situation, the similar cases in foreign securities market occurred far less frequent than in China securities market. Then, what is the reason lead to such events appeared again and again? This problem becomes the focus of attention in the field.By describing the financial fraud case of WANFU BIOTECHLOG, it analyzes the gains and losses of all the parties and their roles in the financial fraud. It also utilizes and remolds the RS model and analyze the scope of compensation for the losses to all parties, and discuss the rationalization under the current system. On this basis, it compares the treatments to the similar cases in United States and Hong Kong.By comparison it can be found that the securities law system in our country has not effectively restraint the behavior conspired by the listed company and intermediary to harm investors’interests. Only by strengthening the corresponding penalties, clearing the corresponding responsibilities, and setting up more of the burden of proof, the interest community can be blocked, the agencies’ neutrality can be guaranteed, and the open, positive development of the stock market can be maintained.