Regulations On Securities Trading By Securities Practitioners

The article 43 of"Securities Law of People's Republic of China"prohibits the trading of shares, for the reason of avoiding that securities practitioners carry out securities trading operations by taking advantage of the inside information. However, the frequently occurred insider tradings indicate that the prohibition of shares trading shall not be the ultimate resolution to the lawbreaking trading of shares. Besides, the prohibition which deprives securities practitioners of the right of investment in shares is controversial. This paper aims to provide some suggestions for the regulations on the shares trading by securities practitioners In China.The introduction presents the background, reason and value of this paper's topic, also the research method.The first chapter introduces the model of regulations on shares trading by securities practitioners in China, and probes into its cause (to prevent insider trading). The chapter also makes an analysis of the malpractice.The second chapter introduces the foreign capital market's regulations on the shares trading by securities practitioners, including the US, England, Germany, Japan and Hongkong, and makes a comparison. In consequence, the author finds that the regulation models of foreign capital market base on prevention of insider trading and conflict of interests.The third chapter makes some suggestions on establishment of regulation model of shares trading by securities trading in China. The regulation model is a complex system which includes the following matters: adoption of the idea of allowing shares trading by securities practitioners, establishment of internal control system and regulations against conflict of interests, clarity of supervision standard on insider trading, frame of a sound system of responsibility on civil law, administrative law and criminal law, and building on credit system of capital market.The conclusion generalizes the views of all chapters, and makes some suggestions on the model of regulations on shares trading by securities practitioners.