Listed Company Insider Trading Cases Comment

Updated date:2011/12/13 13:57:04

Listed company insider trading cases Comment
Jiang Moumou, Qu, Li Moumou insider trading case and the others are happening in my area, I bureau file for inspection by the significant insider trading cases, and Zhongshan Public Utilities insider trading case, the behavior of its people including the former mayor of Zhongshan red Nicholls, it caused widespread concern in the media and society.
"People's Republic of China Securities Law" Article 75 stipulates that "securities trading activities involving the company's business, financial or market price of the securities companies have a significant impact not yet public information, insider information." In the modern on the capital market, due to the breadth between the trade body communication technologies developed and traded often know each other, investors can only be determined by the value of the securities related to public information and to make investment decisions, and thus public information largely the impact on the market price of the securities, the law requires public companies must disclose material information in a timely manner. If you master the insider information insider trading also participate in the market, it will lead to asymmetric information between trading body, harm the interests of small investors, so the law strictly prohibits disclosure of inside information insider information or the use of insider information trading in securities .
Jiang Moumou, Qu, Li Moumou are managers or financial officers of listed companies or shareholders of listed companies has certain authority, access to the undisclosed significant information related to companies operating in the work. Zhongshan public case, since the state-owned enterprises listed on the decision-making layers of approval shall be reported along the way, the relevant administrative officials become insider information insider. In these cases, the perpetrator insider information not publicly traded stock of the machine, their stock trading decisions, earnings or reduce its losses were aware of the acquired inside information directly related to the other investors do not know is because of inside information these actors trading suffered a loss.
The principle of the use of insider information in securities trading, in violation of the securities market "open, fair and just" a violation of other investors, in particular, the right to information and equal property rights and interests of small investors. It involves many stakeholders in the capital market, the insiders or willful, or because of ignorance of the law and defy the law. Their actions not only undermine the fair market order, but also seriously affect the function of the stock market play: ongoing insider trading scandal would scare off many investors, securities price formation process and lost objectivity and timeliness , and finally to the stock market lost optimize resource allocation function, is no longer a "barometer of the national economy."
Specifications provided by the Bureau of Foreign Listed Companies undisclosed information behavior, and carry out insider trading investigation to curb the spread of insider trading. Timely detection of insider trading and timely investigation, to protect the interests of investors, promote market norms and transparent, to give the market a signal SFC and resolutely crack down on insider trading, which will be conducive to the healthy development of China's capital market, promote it plays a more active role in the national economy.

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