Research on the Materiality Standard of inside Information
- 1 Law School, Beijing Foreign Studies University, Beijing, China
Abstract
China’s legislation on insider trading started relatively late, but it has used comprehensive legislation based on the experience of other jurisdictions, which has a certain advanced nature. The legal norms of our country are relatively vague in defining the materiality standard of inside information. There are two kinds of standards for the determination of the materiality of inside information: how to choose the standard of rational investors and the standard of price sensitivity. Through the analysis of the four legislative methods including definitional, enumerated, precedent and comprehensive from the perspective of comparative law, combined with Chinese existing legal framework and specific national conditions, for the identification standard of inside information, it is suggested to adopt both the price sensitivity standard and the rational investor standard to improve the list of inside information and the legislation in order to make our country’s standard for defining the significance of inside information more reasonable.
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