Discussion on the Prohibition System of Securities Fraud: A Study Centered on Anti-Fraud Clauses: A Study Centered on Anti-Fraud Clauses

Author: Hu Xiaoke
Publisher:
Publish Date: 2004-05-01
Features: This book combines the development of the securities market in recent years with the issuance of the "Nine Opinions" by the State Council on the development of the capital market, elaborating and researching the prohibition of securities fraud. The book is divided into six chapters, using the Enron scandal as a starting point to provide a detailed analysis of the general framework of the prohibition of securities fraud, empirical research on securities fraud behavior, legal liability research, and civil liability for securities fraud. It also proposes suggestions on how China can establish and improve its prohibition of securities fraud system. Fraud and anti-fraud are two opposing forces that coexist in the securities market in the long term. From the development history of the securities market, whether in developed countries or developing countries, anti-fraud has always been a clear main thread in securities legislation and regulatory activities. The prohibition of securities fraud not only aims to restore market fairness and justice but also carries the mission of ensuring the sustainable development of the economy and society. The concept of "society-centered" should, to a certain extent, be the fundamental starting point for securities anti-fraud efforts. The debate over "Chinese characteristics" and "international norms" ultimately boils down to an old problem that has long plagued the development of China's securities market—regulation and development. From the development history of China's securities market, a strange cycle seems to have formed regarding regulation and development: when regulators intensify efforts to crack down on fraud cases, the stock market immediately falls into a slump, forcing regulators to struggle to stabilize the market; while when emphasis is placed on development or stability, irrational speculative fervor tends to surge. In the context of global economic integration and the internationalization of securities crimes, emphasizing the importance of "international rules" is undeniably reasonable. However, ignoring the unique development history and growth experience of China's securities market will not help achieve the ultimate goal of anti-fraud.