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Comparative Study On Security Insider Trading Crime Of China And America

Posted on:2014-03-08Degree:MasterType:Thesis
Country:ChinaCandidate:C SunFull Text:PDF
GTID:2296330482472165Subject:Criminal Law
Abstract/Summary:PDF Full Text Request
As a repeated criminal act in the security market, insider trading is the focus of both Chinese and American securities regulators, both countries also have criminal legislation to crack down on insider trading. This paper adopts the comparative study method to research on several important issues of insider trading crime in China and the U.S.The first part will be the comparison of the legislation of two countries, and this will be the basis of this paper. In the following sections, this paper will compare key constituent elements of the insider trading crime.In the course of research this paper will quote relevant legal provisions, the court jurisprudence and scholarly analysis, etc. Finally, this paper will discuss the pros and cons of China’s current legislation on these issues and propose suggestions for improvement.The first section reviews the history of China and the U.S. Securities legislation of insider trading crime. The part of China first introduced the regulations when China’s security market was newly established. Then this paper will highlight the 1997 Criminal Law and its following amendments. The provisions of insider trading crime in the criminal law will be discussed detailedly. The final part of China will be the latest 2012 judicial explanation on insider trading crime. The American part will focus on the key legislation of U.S. In the final part this paper will compare the legislative mode and the similarities and differences of China and United States.The second section will focus on the definition of inside information in Chinese and American law. Insider information is the target of insider trading crime, and plays a key role in identifying the crime of insider trading. Related provisions of inside information can be found in China’s security laws and regulations. There is a detailed list of insider information and a fallback provision in these laws. Scholars have different opinions on the characteristics of inside information on Chinese law. This paper argues that the two characteristics of inside information on Chinese law can be summarized as significance and non-openness. There is no specific legislation on inside information in the United States. The criteria are established in the courts’ jurisprudence as material and secret. The standard of materiality is the awareness of rational investors. The standard of secrecy is an essential standard. Information is effectively disclosed unless the market has already digested the information, merely disclose is not enough. Finally, this paper will analyze the similarities and differences of two countries’ standards and give specific recommendations on related issues on Chinese law.The third section will discuss the definition of insider in Chinese and American law. Insider is the subject of insider trading crime. In Chinese law, insider is divided into two categories. Provisions of the former is mainly seen in the securities laws and regulations, the latter one have been controversial in academia, but the 2012 judicial explanation on insider trading crime had made specific provisions on that. In American law, insiders can be divided into four categories, the traditional insider, the temporary insider, the tipper and tippee of inside information and misappropriator. The definition in American law is developed from a series of cases. Through comparison this paper argues that the insider in American law has broader range that in Chinese law. The defining approach is different as well. In this regard, this paper will recommend some legislative changes in Chinese law.The fourth section is the comparison of insider trading behaviour in Chinese and American law. There are similarities of insider trading behaviour of Chinese and American law. Both contains insider transaction and leaking insider information. The first party compares whether take advantage of inside information as the necessary element of insider trading crime in China and American law. The second part compares the second-tier leak of information, and the third part discuss the definition of express of imply others to engage in transactions.In short, both China and the United States have a severe criminal penalties for the crime of insider trading. But the specific provisions on insider information, insider and insider behaviour are differently identified and classified. Some of these difference are worth in-depth study as they are ideal references for the improvement of China’s legislation.
Keywords/Search Tags:insider trading crime, inside information, insider, insider trading behavior
PDF Full Text Request
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