This article proposes reforms to securities fraud compensation. It draws on the law in China, the US and the UK. A key problem with the current position in the US and the UK is that that it does not fully define fundamental compensatory principles: the date when loss arises, and the rules of causation, remoteness, and mitigation. China has addressed securities fraud compensation and has implicitly defined the operation of compensatory principles. Thus, I use experiences in China, the US and the UK to: (1 ) show that developed markets can learn from the law in emerging markets, and (2) propose reforms to securities fraud compensation that address the key compensatory principles. These principles provide a basis for a globally harmonized approach to market manipulation by false statements.
Legal Issues of Economic Integration