Research On Legal Regulation Of Listed Companies Manipulating The Market In The Name Of Market Value Management

The concept of management of market value was first introduced in 2005 and subsequently affirmed at the policy level.The original intent of regulatory encouragement of the management of market value is that,based on the company’s market value signal,listed companies can take full advantage of their motivation to actively engage in corporate governance to maximise their own value creation and align it with the external stock price.In the absence of specific regulatory rules,the practice of management of market value has gradually gone astray.Any activity related to capital operation can be called as the management of market value,among which there are numerous cases of market manipulation in the name of market value management.The CSRC has made it clear recently that it will uphold the principle of zero tolerance and focus on cracking down on such market manipulation in the name of market value management.This article summarises the illegal features of market manipulation through case studies and finds that the manipulation techniques used in existing cases of this type mostly belong to the category of information-based manipulation.Under China’s current anti-manipulation regulatory system and supervisory practice,there are still many difficulties and challenges in the regulation of pseudo market capitalisation management manipulation.From a theoretical point of view,there is a natural conflict between the theoretical basis of market capitalisation management and market manipulation,and there is no exemption system in China’s anti-market manipulation legislation for market capitalisation management,which is an artificial intervention in share prices.From the level of the regulatory system,the regulation of informationbased manipulation is still not systematic.From the perspective of the determination of manipulation,it is often difficult to distinguish this type of cases from false statements,insider trading and other illegal acts,and it is very difficult to prove subjective intent,which puts high demands on the level of supervision.From the perspective of liability,there are currently improper or challenging applications of administrative,judicial and civil liability for this type of manipulation.Based on the above dilemmas and challenges,this paper puts forward proposals for regulation from the aspects of promulgating self-regulatory rules,improving the legal regulatory system for market manipulation,enhancing regulatory capacity and regulating the governance of information disclosure of listed companies.