Analysis On The Case Of Securities Misrepresentation Between Hu Lihong Et Al And HUNAN ER-KANG PHARMACEUTICAL CO.,LTD.

In recent years,Securities Misrepresentation liability disputes are prone to occur frequently.However,there are some problems in China’s relevant legal norms,such as unclear and specific provisions,loopholes in the application of law and lagging behind the rapid development of the securities market.In judicial practice,the judgment standards for the focus of disputes involved in Securities Misrepresentation liability dispute cases are not unified,and there is still a big gap in effectively safeguarding the legitimate rights and interests of investors.Although the Supreme People’s court and the legislature have successively standardized the focus of Securities Misrepresentation liability disputes by issuing the minutes of meeting,amending the securities law and amending relevant judicial interpretations,there are still many contradictions in the theory and practice of Securities Misrepresentation liability disputes,which need to be further analyzed and studied.The case of securities misrepresentation between Hu Lihong et al and Erkang pharmaceutical company and other cases show that the dispute focus of false statement cases in the securities market mainly focuses on the determination of the significance and causality of false statements,the determination of the implementation date,disclosure date or correction date of false statements,as well as the scope,calculation method,reduction and exemption of loss compensation.Sort out and summarize the solutions to some important and difficult problems in the judicature of Securities Misrepresentation liability disputes in China at the present stage.For the identification of the significance of the content of misrepresentation,summarize the two identification standards of form and substance.When identifying,we can first analyze whether it meets the standard of formal significance,and then analyze whether the standard of substantive significance can exclude the standard of formal significance.As for the causal elements of compensation liability,the determination of transaction causality should be comprehensively analyzed from three aspects:whether it substantially affects the stock trading price,whether it is enough to mislead investors’ trading decisions and investors’ specific trading conditions.When determining the loss causality,we should pay attention to the investigation of the risk of the securities market itself and other risk reduction conditions such as the company’s business environment.As for the calculation method of loss compensation,the calculation formula of loss compensation is summarized on the basis of determining the real value of stocks.Finally,it analyzes that the newly revised false statement provisions may have a significant impact on judicial practice from three aspects:abolishing the pre procedure,establishing the rules of prediction information safe harbor and improving the factors of liability relief,and preliminarily studies some suggestions and measures to deal with the new situation and challenges of the securities market and better safeguard the legitimate rights and interests of investors.