A Study On Monitoring System Of Insider Trading In Chinese Stock Market

With the accomplishrnent of reform of split Share strucure in Chinese stock market, non-tradable shares become liquid by offering liquidity discount.Therefore the chance of inside trading unavoidably increase.As new business and products such as margin financing and securities loan and stock index futures come forth,inside trading become more and more complicated.Accurate and swift discriminating of inside trading is key of monitoring.This paper concentrates on establishing comprehensive discriminating model of inside trading.After a general statistic of inside trading case,all the market indices are analyzed and then introduced into discriminating model.Finally effective indices are drawn out through empirical test to form the effective discriminating models under good news and bad news,and related suggestions are given for monitoring.As the result of empirical test shows,the final discriminating models can distinguish inside trading effectively,and provide regulators with important foundation for inside trading monitoring.