Research On The Identification Of Securities Insider Trading In China

Compared with western countries,China’s securities market only started to develop in the 1990 s.In the course of the past thirty years,the development of China’s securities market has made great achievements,but frequent insider trading has brought serious adverse effects to our securities market.In order to maintain the healthy development of the securities market,China has formulated a series of laws and regulations to regulate insider trading.Accurately identify insider trading as the prerequisite and basis for regulating insider trading.China’s basic law regulating insider trading,the Securities Law,and other laws and regulations related to insider trading provide for the identification of insider trading.In December 2019,the Standing Committee of the National People’s Congress revised and adopted the new "Securities Law." The new "Securities Law" partially revised and adjusted the relevant provisions on insider trading,further increasing the crackdown on insider trading.However,accurate identification of insider trading in practice is still an important problem in regulating insider trading in China.As China’s securities regulatory agency,the CSRC has been making unremitting efforts in cracking down on insider trading.The CSRC’s law enforcement practice not only promotes the healthy development of China’s securities market,but also provides excellent materials for studying the identification standards of securities insider trading.This article will integrate the laws and regulations of insider trading and the law enforcement practice of the CSRC to discuss the identification of insider trading.It is divided into three parts.First,we will sort out the legal sources of regulating insider trading in China.Based on the insider trading punishment cases announced by the Securities and Futures Commission from 2014 to 2018,we will summarize the current status of the enforcement of the Securities and Futures Commission’s identification of insider trading.It can be seen that the number of insider trading cases in China has remained high in recent years.The types of insider information involved in the insider trading cases investigated and handled by the CSRC are mostly asset reorganizations.In practice,there have been a large number of insider trading illegal entities identified using pocketbook provisions..This section is intended to provide a general introduction to the legislation and law enforcement practices of insider trading and pave the way for detailed discussions later.Secondly,the three core components of insider trading,namely,the subjective elements,the target elements,and the subjective and objective aspects of the identification are studied in detail.The illegal subjects of insider trading include "inside information insiders" and "people who illegally obtained inside information".After analyzing the cases of administrative punishment promulgated by the CSRC,it was found that among the insider insiders,"Dong Jiangao" occupied the majority of insider trading subjects.huge comparison.People who illegally obtain inside information not only refer to those who obtain inside information by illegal means,but also those who should not obtain inside information.It is necessary to distinguish between the two and give them differentiated certification responsibilities.In practice,attention should also be paid to the identification of atypical insider traders such as listed companies,acquirers,and relatives.Inside information is significant and undisclosed.In addition to identifying the types of inside information explicitly listed in the law in practice,the CSRC can use the significance and undisclosed nature of inside information to identify inside information.China adopts the form of public disclosure of inside information,and should comprehensively determine the time and scope of disclosure of inside information by integrating various factors.The CSRC’s determination of "knowledge" of inside information is mainly based on presumption in combination with environmental evidence.For the "use" of inside information,the SFC adopts a standard of "knowledge and use".The identification of insider trading behavior should be based on a comprehensive judgment based on the abnormal degree of the parties’ behavior and the time when the abnormal behavior occurred.Finally,based on the analysis of insider trading administrative punishment cases announced by the CSRC,the SFC summarizes the identification of insider trading and summarizes the identification standards for insider trading in order to play a constructive role in regulating China’s securities insider trading behavior.