A Study On Legal Regulation Of Inside Trading In Chinese Securities Market

Insider trading is the securities market ills. It destructs the normal order of securities market, also violates the legitimate rights and interests of investors, and becomes the world's securities regulatory issues and problems facing the common. Insider dealing is good for hiding, and Chinese securities market is still in the "emerging and transitional" phase, so regulation of insider trading laws is not perfect, what leads the insider trading repeating. The field of securities law enforcement has become a major contradiction.Insider Trading means the person that masters the inside information, which do not open and have a major impact on the price of securities, who uses information dealing in securities or the disclosure of inside information or advice to others to engage in securities transactions. Insider Trading constituted by the three elements, insiders, insider information, insider trading. One insider dealer is the subject of insider trading, Insider trading information is the objective basis, and the use of inside information in securities trading is the main expression. As Insider Trading serious damages the legitimate interests of investors, destroys the securities market trading, undermines the confidence of investors, It is not conducive to healthy and stable development of securities markets. To protect the investors have a fair chance of profit, open, fair and just market environment, improve the efficiency of resource allocation, improve the competitiveness of Chinese capital market should be prohibited insider trading.For the Insider Trading, U.S., EU, UK, Japan and Chinese capital market development in Hong Kong and other countries or relatively mature regions have established a characteristic of each regulatory and legislative system, for improving legal regulation of insider trading has a very good reference. Such as the powerful Securities and Exchange Commission enforcement authority, co-regulatory system of justice, reconciliation system, insider reporting system, system of EU regulatory cooperation, the United Kingdom, and Japan's self-regulatory system in Hong Kong is relatively independent of the professional tribunal system, etc.As a late start in Chinese securities market, to combat insider trading, we repeatedly modify and improve our laws and regulations, and established administrative, civil, criminal accountability for the Trinity system. From the insider trading investigation of cases in recent years can be found, the law of insider trading in the regulation of the existence of recognized standards unclear, incomplete or not relevant laws and regulations supporting inadequate or difficult to implement law enforcement rights, criminal and civil penalties and other defects or problems of small, resulting in cases of insider trading investigation difficult, difficult to identify, investigate single way to investigate long period, the penalty is not timely, not high society deterrence situation.According to Chinese Securities Regulatory status of insider trading laws and the problems, to effectively combat insider trading, protect the securities market open, fair and equitable, protect the legitimate interests of investors, we need to constantly improve the legal regulation of the securities. Focus on resolving the insider trading investigation of cases found in the existing difficulties, the survey difficult, difficult problem identified. At the same time, as securities market insider trading has the approval of many links in a wide range of information, state-owned enterprises, and information chain length and the case characteristics such as highly specialized. The administrative law enforcement and judicial resources are limited, decided not to rely solely on law enforcement and judicial sanctions. In order to improve combat efficiency and effectiveness of insider trading, full uses of social resources, by strengthening the routine supervision, advancing the prevention, monitoring, perfecting legal regulation, increasing punishment, implement the stronger regulatory system. And strengthen the routine supervision, the integrity of culture, and education and propagation, Control the source; Strengthen Insider information management of listed companies, establish a registration system for insiders; Strengthening social supervision, improving the system of reward and confidentiality etc. Revising the regulations related Insider trading in Criminal Law, perfecting civil compensation system, introducing burden of proof system, establishing reconciliation regulation; enlarging insider trading law enforcement powers. Establish joint enforcement mechanism that including China Securities Regulatory Commission, Government and Judiciary to further improve the efficiency and effectiveness of law enforcement.