Analysis On Inside Trading's Cases And Regulations In China's Stock Market

Inside trading is a common violation in stock market. From the year 2006 to 2007, the Chinese Stock Market soars to a historic high as many positive elements pushing ahead. A number of infringements and deregulations occur frequently . Many investors recklessly run into the market and speculated amid of an immature environment both legislatively and administratively. As the legitimate regulator of stock market in china, China Securities Regulatory Commission (CSRC) has taken measures to strengthen oversee. However, the effects and enforcement are not ideal.This paper applies Empirical Analysis Method to discuss cases of 16 symbolic policies or incidents took place in the equity market and features of index or turnover of the market so as to find links between them and the common traits of inside trading. In particular, the Zhejiang Hangxiao Steel Structure Co., Ltd. (600477,SH) a typical inside trading case was of a significant successful case conducted by CSRC was given to discuss solutions and efficiencies of enforcement of that cases. The completion of the case's investigation have overcame remarkable difficulties both jurisdiction and evidence collection, and it becomes the fewest cases that have been successful concluded in China's Stock Markets.On the basis of narrations above, the paper compares administration difference internationally so as to understand the profiles of our equity market and reasons for ineffective enforcement of inside trading. Finally it gives enforcement suggestions and pre-emptive, middle and aftermath measures from differed angles against inside trading in hope of contributing the healthy development of the Chinese Stock Market. Currently, the China's Stock Market has seen a unprecedented 70% slump from its historic high as many investors loss considerably. However, market performance may create a positive environment for solve problems as investors become more caution and mature.One point have to be make it clear is that the author of this paper serves in security regulatory agency, who have a interest and professional understanding toward inside trading behavior and cases research. However, this paper has quoted sources clearly if necessary.