A Law and Economics Perspective
Edited by Stefan E. Weishaar, Niels Philipsen and Wenming Xu
Chapter 4: Unpredictable enforcement: a study of the CSRC’s approach to insider trading in China
This chapter makes two important contributions to insider trading research in China. First, from a purely legal perspective, it remains unclear whether recklessness constitutes sufficient grounds for the China Securities Regulatory Commission (CSRC) to punish corporate insiders who leak inside information to tippees without an interest-exchange, or whether the CSRC can punish only de facto conspiracies in which the tipper deliberately provides material information to benefit a tippee. Second and more importantly, beyond these sophisticated technical issues, research on the enforcement strategy of tipper liability has important implications for China’s regulatory and legal institutions. Are the courts meant to act as a check on the CSRC’s power through judicial review? Is the regulator equipped with sufficient resources to address the wide range of insider trading activities in China? Finally, is the regulator under the control of powerful insiders or otherwise corrupt?
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.