Research On Controversial Issues Of Objective Elements Of Inside Trading Crime In Securities

Nowadays, with the fast development of the socialist market economy and the upturn of living standards, securities market has been growing coupled with the increasing number of trading. Meanwhile, insider trading has caused the high status in the increasingly serious criminal acts, which disturbs economic order and violates the fundamental principles of openness, fairness and justice in securities trading. Therefore, the acts of insider trading ought to be regulated by criminal law and other related laws.There are still some problems on the objective factors of insider trading, although the crime has been enacted in the section 180 of Criminal Law of the People’s Republic of China with the correlative judicial interpretations. This essay is based on the rules on the objective factors of insider trading. Simultaneously, combining the cases and the judicial interpretations, it will analyse the controversial issues on the identification of inside information, the nature of “utilisation” and “expressing directly or indirectly others engaged in trading activities”.The essay is divided into three chapters:The first chapter mainly asserts the characteristics of inside information. There is the identity of views that non-publicity and importance are the requisites of the inside information identification. However, these disputes still exist on the time period of publishing and the standards of importance. This essay asserts to ascertain the start of publishing by way of typological thinking since there is the feature of non-publicity when inside information exists. In respect of the standards of publishing inside information, there is a controversy on the formal and virtual publishing in theory. This essay states “publishing virtual fact” accompanied with the formal publishing standard which is adopted in the Criminal Law. In order to identify the importance standard of inside information, this essay is in favour of the subjective opinion although this point is still arguable in theory. In addition, based on the nature of insider trading and the relation with other crimes, the essay insists on the feature of authenticity as other features of inside trading. Meantime, where inside information forms and the feasor has an error of cognition on it, this situation is regulated in accordance with the principles of cognition errors of facts.The second chapter is to investigate the nature of “utilisation” and the related criterions. This is arguable whether utilising inside information to bargain accords with one of the requisites of the crime of insider trading. Abiding by the Criminal Law, this essay thinks this act belongs. Furthermore, it construes the standards of proof in detail, including the criteria of “implied utilisation”, through the correlative judicial interpretations.The third chapter is to analyse the issue on “expressing directly or indirectly others engaged in trading activities” for crystallising its value in criminal law. The nature of this act is to regard the accomplice as a principal offender in order to settle the matter on complicity. Additionally, this essay handles the meanings of “explicit” and “implied” which is amount to the sense of “suggestion”, and researches the correlation between “explicit/implied” and the act to disclose inside information.