TITLE:
Research on the Materiality Standard of inside Information
AUTHORS:
Wenjing Liu
KEYWORDS:
Inside Information, Materiality Criterion, Rational Investor Criterion, Price Sensitivity Criterion
JOURNAL NAME:
Modern Economy,
Vol.13 No.8,
August
23,
2022
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.