A Case Analysis Of Everbright Securities’8·16Insider Trading Event

With the self-perfection of the securities market，and the gradual—increasing of thenumber of the market participants，the depth and breadth of the securities market areconstantly expanding，but there were also some issues requiring urgent solution in theprocess of evolving and growing of the securities market，insider trading is one of them.The effectiveness of the securities market is based on the information—opend rules，which proved by theoretical research and practice of the securities market. In efficientcapital markets，the information should be announced to all investors accurately，timelyand adequately.However，there is a serious problem in the disclosure of information in real life，notall information can be deliverd accurately and timely to investors. Insider trading is afunny business comes into being in this case of asymmetric information. Insider tradingwill make an impact on stock price volatility，will damage the benefits of large mediumand small investors，will also disturb the normal order of the securities market at thesame time and which will make it difficult to perform the basic function of the securitiesmarket. In certain extremely rare instances，such as a dramatic decline in the number ofmedium and small investors or a large number of investors may stay out of the market atthe same time，may even lead to the overall collapse of the securities market.Although the China Securities Regulatory Commission has gradually realized theharm of the insider trading，stepped up the supervision of insider trading and marketmanipulation，dealt with hundreds of cases related to insider trading hundreds in recentyears，these didn’t fundamentally change the present situation of insider trading of oursecurities market and to efficiently oversee the market indeed.The behavior of insider trading remained incessant after repeatedly prohibition，which seriously hampered the sustainable development of whole environmentalconstruction of the securities market，affected the market investor’s decision-makingswhen they make decisions and influenced the future development of the listed companiesas well.So，through the research on the phenomenon of insider trading in China’s securitiesmarket，this thesis analysed mainly the fat finger of Everbright securities that occured in August16as example，from the two aspects of macroscope and microscope，and employthe theory of Behavioral Finance to analyze the occurrence about the insider tradingcaused by asymmetric information、the faculties in the internal governing structure ofChinese listed companies have serious flaws and the vary speed with innovation bybrokerages，draw a conclusion，so as to provide some feasible countermeasures forincreasing the efficiency of regulation about insider trading of securities market of ourcountry，the thesis study on existence of the phenomenon of insider trading from a newperspective，all this has some meanings in practice.