Stock Price Manipulation and Its Regulation
|School||Southwestern University of Finance and Economics|
|Keywords||Market manipulation QFII Regulatory Makers|
In the Asia-Pacific countries, the share price manipulation is widespread, serious harm, market manipulation, the earliest in the financial markets in the 16th century, Antwerp, counting from the beginning of that period, market manipulation has 450 years of history. In the early 17th century, the world-famous Amsterdam Stock Exchange has widespread market manipulation The main manipulation techniques is to create the phenomenon of false trading, manipulation of the stock of the Dutch East India Company and the Dutch West India Company. With the rapid development of the securities market, emerging market manipulation and more covert manipulations. As the stock price manipulation the phenomenon seriously infringe on the interests of small investors, distorting the market price of the stock, and destruction of government macroeconomic regulation, reduce the efficiency of the allocation of social resources, money, capital and foreign exchange in serious cases even cause systemic risk in the market, brought heavy losses to the national economy as a whole, thereby affecting a country's economic and social stability. New in China's securities market after more than 10 years of development, has made remarkable achievements. Evaluation of some experts and scholars on China's stock market made \also a reflection of the severity of China's securities market stock price manipulation. Is particularly worrying in rampant price manipulation, the dealer holding a common background, China is still very low proportion of stock price manipulation investigation of illegal behavior, not punishment, and the emergence of tight loose phenomenon . Domestic theory of stock price manipulation and its regulatory advocacy also lagging behind and weak, and also lack of awareness of the community on the dangers of price manipulation, the need to increase and how to increase the stock price manipulation supervision, there are still many vague ideas and perspectives; and exposure of China's securities market regulatory system, there are still unreasonable structure and operation mechanism is not smooth, making illegal acts are not promptly investigated and punished. Many countries of the world has always attached great importance to the study of the problem, and through the continuous improvement of the regulatory regime of the securities market, to improve supervision of stock price manipulation and other violations from the current situation in China, the stock price manipulation is very serious, of stock price manipulation lagging behind the theoretical study of the regulatory, securities market regulatory system is also difficult to adapt to the regulatory objective need of stock price manipulation. In this context, this paper is mainly divided into four chapters to explore this issue: First, the first part of the definition of market manipulation, from a legal point of view, the point of view of economics, the point of view of the regulatory authorities, respectively, are described in the law the perspective of the European Union in recent years, this problem has a very significant breakthrough; representative significance in view of the economics profession, Allen and Gale definition of market manipulation; From a regulatory perspective, the world's most perfect regulatory authorities - the Securities and Exchange Commission on this issue there are ambiguities. The second part focuses on the root causes of stock market manipulation, object manipulation respectively, from the securities market - securities, the main body of the securities market manipulation - people, between the guest and the host of institutional arrangements of these three aspects to elaborate securities market manipulation, from the point of view of the object, the securities are financial assets, financial assets characteristics determine the securities to be manipulated natural conditions; From the point of view of the subject, the investors do not fully comply classical economics rational assumptions, such as the investor has \institutional arrangements between fund holders, these arrangements generation manipulation to create the conditions. The third part of this article the securities market manipulation is divided into three categories: transactional market manipulation (trade-based manipulation), the action-type market manipulation: (action-based manipulation), the manipulation of information disclosure type (information-based manipulation), for which each type of market manipulation is described in detail and listed securities market are typical cases to illustrate the transactional market manipulation of the highlights of this paper is to compare between China and the United States in the manipulation of different; for action-type market manipulation, which is the most focused part of this article, by economics in a single period, the intertemporal decision theory and game theory simple knowledge of the action market manipulation in-depth analysis, including the use of Changhong, Enron, the case of radio and television networks to the mobility market manipulation in three categories for specific elaboration;-manipulation of information disclosure, the article focuses on the case of a capital market in Hong Kong on the Mainland of China, QFII into capital markets if there is no effective regulatory mechanism, it will become more powerful banker. Finally, how to manipulate actors regulatory expand elaborate paper listed companies, institutional investors, financial intermediaries accounting firm, brokerage and other regulatory body is divided into four categories for the supervision of listed companies This paper emphasizes the supervision of company executives, which is directly related to put an end to insider trading, the recent market Hangxiao Steel \, the paper pointed out: QFII in China's capital market regulatory authorities in China may be related to the original originally introduced somewhat contrary to the original plan of China's regulatory authorities likely can not be achieved, if the regulatory atmosphere of the Mainland of China is not a great degree of on the improvement of the performance of QFII on China's mainland capital market will allow the investor a re; respectively as the representative of the accounting firm of financial intermediaries as well as brokerage, the paper mainly the problems from the start, its elaboration. The main point of this article: the securities market manipulation is the outstanding problem of China's securities market, this issue has long plagued the regulatory part of our country. Specific cases, due to the United States, Hong Kong, the Mainland of China, the inconsistent attitude towards market manipulation, resulting in a significantly different incidence of regional securities market manipulation. American wealth with the people \companies to create a profit, so that the femoral gains, social resources in the most efficient configuration, the economy will be developed. But how to ensure that investors' funds are invested in the companies that create wealth? This requires the efforts of the regulatory authorities, and how to ensure that the above mechanisms are effectively run the Securities and Exchange Commission after a crash after 1929-1933 draconian \In recent years, the United States also appeared in \Due to China's specific national conditions, China Securities Regulatory Commission in dealing with market manipulation need to learn from abroad, simply create wealth with the people thinking of getting assurance mechanism, China's securities market to get the long-term health of running the economy to sustainable development , the wealth of society in order to continue to increase. Main innovation of this paper: in 2004, the equity division reform official launch of China's capital market is entering a new phase, after more than two years of practice, the market generally split of equity to be a positive outcome of the reform, but as time goes by not previously listed stock liquidity circulation, due to the liberal status quo of China's securities market law short-term can not be effectively improved, \This issue will be plagued China's regulatory authorities in the next few years, this is a major innovation of this paper. This article another innovation on the QFII. A very short time relative to the newly established China's capital market developed countries, investors mainly in short-term speculative order as soon as possible consistent with the international regulatory authorities want to change the the speculative status quo of our domestic Through the introduction of the QFII regulatory authorities; the QFII investment process, they follow the value investing, the principles of long-term investment, this will affect the behavior of the domestic investors. The innovation of this paper is that the QFII in a foreign country is a long-term investor, and to our domestic investment is not necessarily in accordance with the original investment, the reason lies in the foreign securities market legal environment and legal environment in China significantly different by analysis of the specific case, is not difficult to foresee in the Mainland of China's stock market, our domestic regulatory authorities not its strong regulatory, QFII will become more ferocious Makers. I is limited and confined to the length of the article, there are still many inadequacies, wing hope teachers and students, for their valuable advice, I will also continue in the future study of relevant theoretical research.