Research On The Anti-fraud System Of Stock Issuance

Chinese capital market has experienced more than 30 years while fraud issuance cases are common,seriously damaged the interests of the maj ority of investors and damaged the order of the market.According to the GONE theory,Asymmetric Information Hypothesis and the Lemon Market Theory,the reason of the fraud issuance is that the income of fraud if higher than the cost.The defects of the stock issuance Anti-fraud system is harmful for the base of the security market.Therefore,it's^necessary to improve the stock issuance Anti-fraud system by decreasing the income of fraud and increasing the cost of fraud.Chinese stock issuance Anti-fraud legal system consists of Criminal Law,Securities Law and relevant laws and regulations of China Securities Regulatory Commission.The self-regulatory codes made by stock exchange are also important parts of the Anti-fraud legal system.With the practice,this system is developing gradually.However,there are still many defects of Chinese stock issuance Anti-fraud legal system.The qualifications of IPO is a kind of scarce resource and the securities regulatory commission offer hidden guarantee to the stocks,increasing the income of stock issuance fraud and induces the behavior of fraud.The single and centralized supervision system leads to that it's hard to discover the behavior of fraud.The deficiency of the punishment mechanism also makes the cost of fraud lower.The suggestion is taking example by American stock issuance Anti-fraud legal system to improve our system.It's essential to adopt IPO registration system and pay more attention on information disclosure.In addition,it's necessary to improve multiplex regulatory pattern.Besides,the punishment mechanism and the investor protection system should be improved to guarantee the base of the security market.