AN OUTSIDER'S VIEW ON CHINA'S INSIDER TRADING LAW

China's insider trading law can be found in the country's first unified securities industry law, Securities Law of the People's Republic of China, which came into force on July 1, 1999. The provisions of this law relating to insider trading, however, do not seem to help achieve the legislative purpose of the Securities Law, namely, to protect the interest of investors and promote the development of a socialist economy. The inadequacy of the current regime lies in the overly narrow definitions of "insider" and "inside information," the lack of workability of civil liability provisions, and the failure of China's Securities Regulatory Commission to use its interpretive powers. This Article argues that these problems can be solved by adopting Australia's approach to insider trading regulation, which is based upon a person's ability to access non-public material information.