The Cognizance Of The Insider Trading

With the continuous development in China's economy and society, an increasing number of economic cases has occurred to affect the economic and social stability, among which the cases of insider trading have common occurrence frequently. Insider trading's harm on the securities market has become more prominent. The current study on insider trading regulation emphasizes on the interpretation in the perspective the criminal law, and this paper makes more accurate theoretical study in the perspective of the civil and commercial law. The author believes that the regulation on insider trading should firstly resolve the identification of insider trading, while for its identification, firstly we need to make the effective definition on its basic elements. With the perspective of the 2015 “Xu Xiang Case” together with the difficult parts for the insider trading identification in our current judicial aspect, this paper starts from three parts of insiders, insiders' information and insider trading behaviors, and makes in-depth comparative study on the relating issues currently by introducing the legislation and related doctrines from different countries in the academic reviews and puts forward my own ideas and suggestions. Based on this, this paper makes suggestions of constructing our own identification standard for insider trading for the related deficiencies in the identifying standards of insider trading and together with the detailed comparative study of the related doctrines from the common law countries, therefore, this paper has a certain theoretical and practical significance.The author mainly uses the comparative study method and considers China's national conditions and the legislation situation to carry out the elaboration in four parts, that's: the introduction, introduction to the Xu Xiang case and event involved insider trading behavior analysis, the exordium, analysis on the difficulty of the insider trading identification in China's securities market, as well as the construction of the insider trading identification standard for China's securities market, thus to study insider trading, the behavior that impacts the well-ordered development in securities market and needs to be clarified.The first part is the introduction of this paper, and mainly elaborates the topic, the study purpose, the theoretical significance, the practical value, the research methods and the innovation in the research.The second part is the case profile. This part makes a brief introduction on details of the Xu Xiang Case, and analyzes the related behaviors on insider trading of the insider trading identification in China's securities market and discusses behaviors of "stock market manipulation", "the use of the company in parents' names to be colluded with executives" and "influencing investors' stock options through its own influence", etc.The third part is the academic review of the insider trading behavior, including scholars' discussion on the arguments on the definition of insider trading and its basic elements. For the insider trading identification, academic review should be made on the disputes on insiders' "status standards" and the "information possession standards" among its basic elements, as well as the disputes on the open standards.Through the above theory explanation and case studies, the fourth part summarizes the shortcomings in our insider trading identification, and proposes the criteria with relevant EU theory system as the main reference and treating information possession as the identification standards on insiders, thus to provide a complete path of information disclosure and identification standard for the insider trading behaviors.