Research On Insider Information Management Of Chinese Listed Companies In Transitional Period

Insider trading at stock market is the transaction made on purpose by the insider to achieve profit or avoid loss with its privilege on access to internal information. Our stock market develops rather slow, and still in the transition period, with the defects of incompetent fundamental regulations, and insufficient integrity culture, supervision mechanism and less-developed investment culture, major cases like Zhongshan Utility, Zhongguancun, Yanbian Road etc still happens from time to time. Insider trading is considered as key supervision objectives by world’s stock markets, due to its serious damage on investor interests, negative impact on the heath development of stock market, image of operational efficiency of the listed company, several regulations and judicial interpretation is issued continuously to strengthen the management on insider trading, against which, mal-management of internal information of listed company wd results in severe penalty and high operational risk, against which, mal-management of internal information of listed company wd result in severe penalty and higher operational risk duly. Due to its secrecy and corresponding high cost of supervision and verification, the actual percentage of insider trading verified is quite low, thus, strengthening the management of internal information to prevent the insider trading is not only a contribution to stock market, but also a need of risk management of list company.This article firstly reviews the, history and status of insider trading research domestic and abroad and states the realistic meaning of the research of this articles. Then it with relative regulations of insider trading of our country, coped with the actual cases happened in stock market, to systematically analyze the main reason and the reasons behind of the key defects of internal information management at public company, by referring to the experience of internal information management of USA and HK stock market, With one company listed over10years-Company A as example of internal information management practice, to testify in detail the constituting process and implementation of internal information management, as reference on prevention of the insider trading of listed company at Chinese stock market. Through research, it is concluded that Chinese stock market should take necessary measures to promote the internal information management and supervision mechanism of listed company to prevent the insider trading, combined with severe penalty on insider trading, for achievement of effective management on internal information and healthy development of stock market. At last, against prevention of insider trading, this article proposes as following:optimize civil compensation regulations on insider trading, enlarge penalty value, encourage reporting of insider trading, strengthern the supervision of dominating share holder of listed company etc.