The Comparative Study Of The Crime Of Insider Trading Between Chinese And European Union Law

Insider trading crime is an economic crime along with the development of financial industry. Insider trading is harmful to the fairness, impartiality and openness of market economy, and to the healthy development of market economy as well. In recent years, the insider trading activity showed a trend of significant growth with the rapid development of economy in our country. Using law to punish insider trading crime is of great significance to the healthy and orderly development of market economy in our country, and also to safeguard social fairness and justice.As the largest economic and political entity, The European Union should attract more close attention to since the economic globalization and diversification coexisting in the international political and economic pattern. The EU enjoys legislative and judicial power marked by the European court of justice. As a separate legal subject, it is required for all students to study the EU law. EU member states include the continental law system and Anglo-American law system countries. Coordination and development between the EU and its member states law is an extent that represents the development trend of the world law. The EU possesses more mature market economy than we do, and the market regulation is more complete than what we have. Although our country has built a basic legal framework for insider trading, the framework still needs further hardworking. Therefore, understanding the EU law and practice of insider trading has a very good reference value to complete the relevant laws of our country.As a member of the European Union, France began to prohibit insider trading through law since 1970. The European community requested its members to prohibit insider trading through legislation. In 1989, The European community launched "insider trading instructions", which means members of the European community must finish prohibiting insider trading legislation in a relatively short time. Therefore comparing legislation of The EU becomes necessary. I hope studying the EU and China insider trading crime has a good impact of perfect the Chinese legislation on crime of insider trading.This paper is divided into four chapters in addition to the introduction. The introduction introduced the topic background, significance of the research, the domestic and foreign research situation of the insider trading crime.The main part of the article is divided into four chapters. The first chapter introduces the legislation of China and the EU. I conducted in-depth comparative study of both similarities and differences of China and the EU. The similarities are on insider information, insider trading subject, subjective factor and objective factor; the difference is on legislation pattern. The European Union constantly narrowed or even abolished the subject and the subjective elements of the insider trading, and improves the objective elements at the same time.The second chapter mainly introduces the difference of legitimacy of the insider trading crime between China and the EU. There are three kinds of view about whether to regulate insider trading behavior or not: control theory, uncontrolled theory and compromise theory. These views are mainly focus on fair principle, economics, analysis of market discipline, etc. I analyzed legitimacy of prohibiting insider trading from the angle of jurisprudence emphatically.The third chapter is mainly about the core concepts of the insider trading between China and the EU. The EU law constitutes that the insider trading must have four elements:insider information, insider, profit, and knowing the nature of the information clearly. Chinese law constitutes that insider trading behavior; subjective factor and objective factor are the three elements.The fourth chapter mainly introduces the legal regulation of insider trading between china and the European Union. Administrative sanctions and criminal punishment subsidiary are adopted by the European Union, while China emphasizes on penalty or punishment effect. I think the use of criminal punishment, administrative sanctions and civil compensation at the same time is a good way to regulate the insider trading.