Abstract:

Compared with the frequent application of administrative penalties， civil compensation litigation for manipulating the securities market has been in a state of virtual absence for a long time. The main reason for this situation is that the causal relationship between manipulative behaviors and damage results is difficult to determine in the judicial proceedings. The concept of market manipulation is replete with numerous forms developed based on different classification criteria. A meaningful typology should be established according to the different approaches to the causation issue. This should depend on the way in which manipulative behaviors affect investors’ investment decisions and losses. It is a reasonable arrangement to classify and discuss the categorization in terms of trade-based manipulation and information-based manipulation. In the trade-based manipulation， price manipulation and volume manipulation should be reasonably distinguished based on the actual time point when the causal relationship between the transaction and the loss is established. In the information-based manipulation， the basic connotation should be clarified first， and then the causal relationship issues should be addressed according to the essential characteristics of its behavior.

Key words: market manipulation, civil litigation, causation, trade-based manipulation, information-based manipulation