On The Identification Of Civil Liability For Bond Misrepresentation

The recent bond default events in China have shown explosive growth,the number of exposed bond misrepresentation cases has gradually increased,and the number of civil compensation cases filed by investors for bond misrepresentation has increased significantly.There is an applicable dilemma in the determination of liability for false statements in bonds,which leads to the poor operation of judicial remedies for disputes over false statements in China’s bond market.The reason is that there is a gap in the legal norms for the bond market,and the court has always followed the rules for the determination of the liability for false statements in bonds.It is of positive value in the application of law to correctly understand the particularity of bonds that are different from stocks in terms of issuance,trading and the composition of liability for false statements,and to refine and explore the rules for the determination of civil liability for false statements of bonds.From the macro perspective,it can prevent and defuse risks to maintain the normal operation of the bond market and promote the disclosure of information in the bond market.From the micro perspective,it can optimize the judicial remedies for the losses suffered by bond investors due to false statements and strengthen the protection of bond investors.Through the empirical analysis of the bond misrepresentation dispute cases that have occurred in China at present,it can be seen that the court has three main difficulties in determining the constituent elements of liability: in the determination of infringement,the material standard of information disclosure derived from the stock market is difficult to directly apply in the bond market;In the identification of causation,the fraud market theory is generally applied to the bond market and evolved into a "presumption of trust",and the difference of investor identity is ignored;In terms of the determination of the scope of investors’ losses,the determination method does not fit the bond market,and there are still some shortcomings,and the causal relationship of losses has not been introduced.In view of the above-mentioned difficulties,the legal improvement suggestions should be accepted: when identifying the misrepresentation,the "pre-document standard" and "solvency standard" should be taken as the main content to reconstruct the material standard of information disclosure;It is more reasonable to shift from "fraud market theory" to "fraud market rating" when determining the causal relationship,and distinguish the burden of proof based on the identity of investors;When determining the scope of investors’ losses,we should take "investment difference" as the main method and take into account the characteristics of bond repayment of principal and interest.On the basis of determining the basic losses,we should also take the causal relationship of losses into consideration.