The Construction of Chinese Securities Fraud Rules

Building an effective and fair legal system is one of the ultimate goals of China’s capital market construction. To protect minority investors, changes has been made in recent years, especially rules about securities fraud. Though China constantly reform its securities regulation system, whether is it a perfect solution to transplant the regulation in US securities market remains unknown. This article is to critically examine China’s securities fraud regulation, both from the perspective of practice and theory. It is argued that the impact of these changes has the common goal and that they will make profound basis on capital market.