Legal Analysis Of Information Advantage-based Manipulation

On January 23,2017,the Qingdao Intermediate People's Court issued a verdict on Xu Xiang's case of market manipulation,which is the only one information advantage-based manipulation criminal case up until now.And it set off a wave of discussion on information-based market manipulation.The court held that Xu Xiang conspired with others to seek illegal benefits,and manipulated the price and volume of securities trading by taking advantage of information.The amount of crimes and illegal gains was especially large and the circumstances were especially serious,which constituted the crime of market manipulation.As the first case of information advantage-based manipulation,Xu Xiang case broke through the traditional information-based manipulation.Traditionally,the common definition of information-based manipulation includes beguiling trade and "hat grabbing" trade.The appearance of Xu Xiang case enriched the meaning of information-based manipulation,and a new type of information-based manipulation appeared,that is,information advantage-based manipulation.The "new" here contains new morphological features and new behavior patterns,but it has not formed a clear and complete identification logic system.Therefore,there is still some room for discussion on the behavioral characteristics and identification ideas of information advantage-based manipulation.Before discussion on the information advantage-based manipulation,this article in the first chapter has been clear about the definition of information-based manipulation,highlighting the features of information-based manipulation such as confidentiality,with the aid of information advantage,reveals the information advantage-based manipulation in accordance with the basic features of an informational manipulation,which made clear the information advantage-based manipulation is a new type of an informational manipulation.When expanding it,On the basis of expounding the essence of market manipulation,market manipulation is divided into three types.They are transaction type,behavior type and information type.The essence of manipulation includes four characteristics: "seeking improper interests","having abused of certain advantage","influencing the price and amount of securities" and "deceiving or inducing investors".And further analysis of the characteristics of an information-based manipulation,clearing and definiting the nature of the information-based manipulation,to classify an information-based manipulation,when the information-based manipulation anciently contains traditional bewitch transaction,"rob hat",according to the connotation of an information-based manipulation and the features of the information advantage-based manipulation,increasing the information advantage-based manipulation as a new type.The second chapter focuses on the analysis of that train of thought market Information advantage-based Manipulation.from the offender has manipulated intention,actor's subjective subject,with the help of "information advantage",with the actor in the secondary market transactions,information disclosure and the secondary market trading of the coupling,the result of the impact of stock price quantity and the conspiracy of seven angles constructed the train of thought of information advantage-based manipulation.Among them,to conduct subjective intention of the actor needs to consider two factors: the actor's cognition of false or misleading information and the actor's manipulation motivation.At the same time,it is necessary to demonstrate the "information advantage" from three aspects: themeaning of information,the attribute of information and the identification standard of information.The third chapter distinguishes the Information advantage-based Manipulation from false statement and insider trading.Combined with the theoretical basis and practical cases,the author compares and analyzes the manipulation behavior with false statement and insider trading from the perspective of subject,information attribute and behavior mode.It is worth noting that,from the perspective of information attribute,the information in information advantage-based manipulation has the characteristics of "importance","openness" and "inauthenticity",which are different from the features of "significance","non-openness" and "price sensitivity" in insider trading.At the same time,it is also different from the content scope of "information" contained in the illegal act of information disclosure.Finally,in the context of the existing regulatory enforcement,this paper can make recommendations in the path of regulating information advantage-based manipulation on legislation level and practical regulation level.It mainly includes the establishment of a clear-level information advantage-based manipulation legal identification system,the recommendation of introduce legislation to make clear the elements of information advantage-based based manipulation,the use of indirect evidence to prove the proof,the improvement of the data monitoring and screening system,the strengthening of regulatory follow-up,the use of information advantage-based manipulation cases to differentiate the case,and the perfecting of civil compensation system of information advantage-based manipulation,from six perspectives to strengthen the prevention of Information advantage-based manipulation.