Institutional Predicaments and Optimization Paths in the Causality Determination of Liability for False Statement of Securities

In recent years, with the deepening implementation of China's registration system, the number of disputes related to liability for false statement of securities has increased significantly. In practice, problems such as the overly mechanical application of causality determination in liability for false statement of securities and the lack of uniform standards for determining the day of disclosure of false statement remain unresolved. This paper, through empirical analysis and comparative law study, proposes optimization paths that include clarifying the boundaries of the application of the fraud on the market theory, expanding the scope of application for causality presumption and unifying the standards for determining the day of disclosure of false statement. The aim is to establish a regulatory paradigm for the causality determination in liability for false statement of securities with Chinese characteristics, assisting regulatory agencies in improving laws and regulations, thereby strengthening constraint of information disclosure, enhancing market transparency, and promoting the sound development of the capital market.