A Study On Problem Of Securities Market Manipulation

The behavior of manipulating prices in securities market damages the interests of midland small investors, destroys investment and financing function of securities market and seriously endangers the healthy growth of securities market. As an emerging securities market,Chinese stock market has not only some inherent problems of securities market but also its own specific problems. So it's particularly important to research on manipulating prices of securities, and much fruitful research on this problem has been done by many experts and scholars. This paper arranges and summarizes predecessors' research results, and makes discussion on manipulating prices in securities market of our country.Based on collecting a great many documents, cases and trading data, this paper carries on detailed analysis and research to the problem of manipulating prices existing in Chinese securities market from several aspects. First, using some theory results about manipulation of securities at home and abroad, connecting with the reality in China, this paper analyses the manipulation of securities in securities market of our country, including the classification, operation way and general process of securities manipulation, etc. Securities manipulation can be classified into three types, manipulation based on information, behavior manipulation and manipulation based on trading. An informational manipulation refers to the behavior of publishing false positive or negative news to affect investors' stock price expectation so that stock price. Behavior of manipulation is that the manipulator changes the real assets of listed companies by using some method to change price of securities representing the assets. The manipulation based on trading refers to the behavior of only using securities trading to affect securities price, whose definition is very broad, including all manipulation except for informational manipulation and behavior manipulation. Consecutive trading, contract transactions, buying from oneself and selling oneself, bewitching trading, front-running trading, false declaration, trading at specific price and time are eight kinds of common ways of securities manipulation. Usually, a complete manipulation process includes some stages of preparing, entering the market and building positions, whipsawing, lifting up, and liquidating positions to take profit and so on. Then, this papers studies two different cases of securities manipulation, the "Nantong Forging" and "HengyiPetrochemical",discovering that these two cases shows very well the process of securities manipulation, the means used and the reactions of broad market when manipulation occurs. Finally, this paper concludes that because the prices of securities and volume have corresponding response in every stage of manipulation occurring, we can make a preliminary judgment if there is a stock manipulation according to the prices, volume, turnover rate, equity scale, etcetera, in a certain period of time. And the paper puts forward specific suggestions about anti-manipulation from several aspects, such as perfecting the related laws and regulations on anti-manipulation, improving the way of supervision to improve the effectiveness of regulation, attaching great importance to the disclosure of information and increasing the transparency of securities market, strengthening the investors' education and improving the degree of investors' rationality.