Who is an Insider? A Case Study on Chinese Insider Trading Enforcement Principles

This Article uses principles abstracted from developed countries to examine the continuity of insider trading enforcement from various cases in China. It then argues that Chinese enforcement principles are inconsistent and concludes that the current policy-orientated enforcement approach does not improve market fairness or rule of law. Regular legislative review is necessary to ensure that enforcement does not become too excessive in the Chinese equity market. Additionally, enforcement agencies should pay more attention to controlling shareholders and bureaucrats with inside information.