Research Of Civil Liability Of Insider Trading In China

Since the emergence of securities market,insider trading has caused numerous controversies.How to control insider trading is one of the principal problems in the securities market over the centuries.Many countries and regions all over the world have been forbidding insider trading by applicable laws.In China,civil liability of insider trading was firstly established by the securities law in October 2005.But this provision is too principled and there is no judicial explanation.It is difficult to protect the interests of the victims for lack of operability.Therefore,it is necessary to study the civil liability of insider trading and make suggestions to optimize it as soon as possible.Based on the inspection of the relevant laws of some countries and regions in the world,this thesis defines insider trading and the civil liability of insider trading.Then,it analyzes the nature of the civil liability of insider trading in China and considers the civil liability of insider trading to be tort liability,which lays the foundation for further analysis of the specific system of civil liability of insider trading.The civil liability of insider trading contains four parts:insider trading,result of damage,cause-effect relationship and the subjective fault of insider trader.From the perspective of vulnerable investors,the imputation principle of civil liability of insider trading should use the presumption of fault to ensure investors' right of claim for compensation.At present,the Securities Law in China has regulated the civil liability of insider trading,but the provisions of civil liability are fairly deficient.Comparing with criminal responsibility and administrative responsibility,it shows that civil liability plays a very important role in the legal liability system of insider trading.It is inevitable for us to improve and implement the civil liability for compensation.There are also some defects in the civil liability of insider trading in China.For example,the regulation on the subject of insider trading civil liability is imperfect;there are contradictions and conflicts in the standards of insider trading;insider trading civil remedies are ineffective;the extent of compensation for insider trading and the calculation method are not specified;the responsibility principle and causality of civil liability for insider trading are void.Thus,the author proposes legislative improvements:to specify insider trading civil liability subject,to apply "compromise to understand the standard" to define the insider trading behavior,to build an effective insider trading civil remedies,to clarify insider trading civil compensation extent and calculation methods,to determining the responsibility principle and causality of civil liability for insider trading.