Objective Aspect Of Fabricating And Disseminating False Securities Trading Information Crime’s Study

As a securities crime, fabricating and disseminating false securities trading information crime rarely appear in court in our country. Also its application is as not widely used as Insider trading and Stock market or Futures market manipulation crime. With the gradual improvement of the stock market, such violations occur frequently signs: on July 3rd, China Securities Regulatory Commission(CSRC)publicly notified six fabricating and disseminating false securities trading information violation cases. “Financial” reporter Wang Xiaolu was taken criminal coercive measures on suspicion of fabricating and disseminating false securities trading information crime on August 30 th. CSRC once again the commission will increase efforts to combat all kinds of fabricating and disseminating false securities trading information violation cases on January 15 th, 2016. There are indications which securities false information is gradually flooding, fabricating and disseminating false securities trading information behaviors increased sharply. Theoretically frequent violations should improve the probability of application of this crime. However, the reality is that the cases which judicial authorities ultimately identify this crime still remain rare. This leads to a departing dilemma between application of this crime and the actual situation. The root cause of the dilemma is that on the one hand China’s securities market is not mature, and regulatory regime is not perfect. On the other hand, judicial staff can’t catch the point of crime constitution of this crime, and have confusions of identifying related cases.To this end, it is necessary to theoretically study the constitution of this crime. The subject of this crime is the general subject, the subjective aspect is deliberately, and this crime against the object of investors’ interests and the stock market information order. These three crime constitution elements are relatively easy to judge. The questions are focused on the objective aspect of the crime constitution. Crime objective aspect is which criminal law used to describe the behavior of social harmfulness, and the objective factual characteristics necessarily establishing a crime.Crime objective aspect includes harmful behavior, object hazards, harmful result,means and methods of hazards, time and space hazards, and the casual relationship between harmful behavior and harmful results. Since the causal relationship is an outstanding issue of criminal theory, this paper doesn’t discuss the causal relationship.Therefore, the objective aspect of fabricating and disseminating false securities trading information crime referred to herein only includes three elements: “fabricating and disseminating”—harmful behavior, “false securities trading information”—harmful object, and “disrupt the securities market, resulting in causing serious consequences”—harmful result.The first is study “fabricating and disseminating” behavior. First summary three disputes about fabricating and disseminating: dispute one is the controversy of understanding the word “and”, which means disseminating behavior may constitute this crime alone. Dispute two is about fabricating behavior, which the core is the contradictory between statutory guilty principle and crime constitution theory. Dispute three is about disseminating behavior, which is lack of a reasonable definition of disseminating behavior. The second part is analyzing the controversy surrounding.The analysis of dispute one is that fabricating and disseminating behavior are indispensable, and must be met. The key to dispute two is to determine the basis of the pre-law foundation, and the conclusion is that fabricating does not contain the form of concealment. The definition of dispute three depends on the number of audience and the knowledge degree of audience. Finally, proposing an identification way of fabricating and disseminating behavior, which divided into the situations fabricators and disseminators are the same or different body. At the same time,distinguish fabricate with deceit and manipulate.The second is the study of “false securities trading information”. Since the blank of criminal law interpretation, the theorists have no consequence of this concept. At first,summarize the disputes of false securities trading information, which concentrated expression of understanding its concept’s nature and scope is not unified. Second,propose false securities trading information must essentially have characteristics with false, openness, misleading, relevance, general event of the content. And by comparison with information’s range in other crimes to restrict its outer edge. Finally propose a way to judge the false securities trading information. Wherein using three principles to judge misleading. The way to judge relevance is not only investigating the influence factors, but also using Granger causality test.The third is the study of “causing serious consequences”. This crime is result guilty, as a result of this crime’s hazards, criminal law lacks of provisions of this crime’s serious consequences, which brings identification difficulty to judiciary staff. First, extracting the focus of controversy about serious consequence, which filing standards do not have detailed judgment basis about profits or avoid losses, investors direct economic losses, and abnormality of trading price and volume. Secondly, to analyze profits or avoid losses, investors direct economic losses, and abnormality of trading price and volume from legal principle. Finally, proposing a identified way of these three serious consequences. From time frame point to investigate perpetrator profits or avoids losses. Use post calculation method to calculate investor’s direct economic losses. To identify abnormality of trading price and volume, first rule out the non-artificial abnormal situation, then identify situations in the form, at last identify situation’s substance according to the event study.This paper aims to promote the introduction of this crime’s judicial interpretation by discussing about the objective aspect of fabricating and disseminating false securities trading information crime, to help the investigating authorities identifying relevant cases, to curb the proliferation of false securities information phenomenon in reality,and to maintain a healthy and stable stock market.