On The Case Of Jiangsu Youli Investment Holding Co.,Ltd. Securities Misrepresentation

Securities market is a main component of a market-oriented economy.Its existence and development reply upon a well-developed information disclosure system,which it is also an effective protection for investors.The misrepresentation behavior of listed companies not only violates the principle of information disclosure,undermines the market order,also seriously damages the investors' right to know and their economic interests,thus it becomes a focus of legal regulation.In addition to the use of administrative penalties and criminal penalties,investors can also protect their interest through civil proceedings.There are many existing laws have provided basic legal norms for the cases of misrepresentation liability disputes and given the interests damaged investors a powerful legal weapon to safeguard their rights,such as"the Securities Law","the Company Law","the Civil Procedure Law","the Information Disclosure Measures for Listed Companies" and "the Supreme People's Court on the trial of the securities market due to the several provisions of the civil compensation cases caused by securities misrepresentation".The last decade has witnessed a continuous growing economy where various new cases have emerged;therefore,a more comprehensive and developed legislative concept and judicial practice of misrepresentation cases are required.This essay has analyzed a securities misrepresentation case of Jiangsu Youli Investment Holding Co.Ltd.and the verdict of similar cases in Foshan Lighting and Baoan Hongji Securities;meanwhile it has discussed some typical issues like the standards of identifying misrepresentation,the judgement of causality and the calculation of damaged interests.With these analysis and discussions,the following conclusions have arrived.To better identify misrepresentations,the independence of court's needs to be strengthen.For the identification standards of a "major event",both the facts of rational investor decision-making and the effects that the information created on stock price need to be considered.In regards to the judgement of causality between misrepresentation and the damage,it is necessary to make a correct analysis of the impact of intervention factors,apply the "common weighted average method"as the main method to calculate the average price of securities,and develop the legal accounting as an expert to participate in the civil case of securities misrepresentation.