[Direct answer]It is possible to file a claim. After the manipulator is subject to administrative punishment or criminal conviction for market manipulation, investors who engaged in reverse transactions during the same period can initiate civil compensation litigation, claiming losses in investment differences, commissions, and interest. The administrative punishment decision is a key piece of evidence for identifying illegal acts, and the calculation of losses takes the period during which the manipulation affected the stock price as the window; the key points of such litigation lie in the two aspects of "opposite transaction direction" and "causal relationship of losses".

1. Problem background and typical scenarios

A stock was continuously pumped and dumped by speculators. After retail investors bought at high prices, the stock price plummeted, and the China Securities Regulatory Commission issued a fine against the manipulators. Who should investors blame for the losses? The new Securities Law and the Futures and Derivatives Law clarify the civil compensation liability for market manipulation. The connection channel between regulatory penalties and civil claims has been established, and judgments on multiple manipulation claims have been made in recent years. Investors' claims path has shifted from theory to practice.

II. Key points of contention

First, the scope of the claimants and the requirements of the transaction direction. Second, the determination of the causality of the loss. Third, the method and period of loss calculation. Fourth, the connection between administrative, criminal, and civil procedures.

III. Professional analysis by Henglue Lawyers

First layer: Legal basis and subject scope: Article 55 Paragraph 2 of the Securities Law stipulates that those who manipulate the securities market and cause losses to investors shall bear compensation liability; the "Several Provisions of the Supreme People's Court on the Trial of Civil Compensation Cases for False Statements in the Securities Market" and the judicial practice of civil compensation for market manipulation specify that the claimants are investors who conduct transactions in the opposite direction of the manipulation during the manipulation period - investors who sell during the manipulator's price-raising period and buy during the manipulator's price-suppression period suffer losses. The opposite transaction direction is the threshold for claiming eligibility. Determining "opposite direction" depends on the manipulation methods (continuous trading, counter-trading, and false declarations) and the corresponding relationship with the investors' transaction timing. Second layer: Causality: Investors who conduct reverse transactions and suffer losses during the period when the illegal behavior affects the stock price (the date of manipulation implementation/the date of eliminating the impact) - investors do not need to prove that they "traded after observing the market". The distortion of transaction prices caused by market manipulation itself constitutes a causal chain. The commonly used method of calculating losses is the investment difference method: the difference between the average purchase price and the benchmark price multiplied by the number of shares held, with commissions, stamp duties, and interest included. Multiple manipulation subjects who jointly commit the act shall bear joint and several liability, with the amount of profits and the duration of manipulation serving as reference for quantifying liability. Third layer: Practical points of procedural connection: The administrative punishment decision on the determination of the manipulation behavior constitutes high-authority evidence for civil cases - first focus on regulatory announcements (punishment pre-notification letters and punishment decisions), and promptly check whether their own transaction records meet the claim window after the punishment takes effect. If the manipulator is subject to criminal prosecution (for the crime of manipulating the securities market), the facts determined in the criminal judgment can also be used in civil cases. The procedures for repayment and recovery of funds do not conflict with civil claims, but the order of compensation is important. Defendants often use "systemic risks" and "investors' own faults" to reduce compensation, and the logic of excluding losses is the main battlefield of the case. Fourth layer: Litigation practice: Confirm the litigation subject - the defendant (manipulation subjects are often multiple, with accounts and actual controllers listed in detail), three supporting documents (account statements/settlement statements with brokerage stamps, administrative punishment decisions or criminal judgments, identity certificates), and calculate the detailed losses. Jurisdiction over securities disputes can be exercised by the courts of the defendant's domicile or the place of infringement. Shanghai Financial Court and Shenzhen Intermediate Court have centralized jurisdiction and model judgment mechanisms for collective securities disputes. The scale effect of collective rights protection is obvious - investors in the same case jointly appoint lawyers, and the cost of evidence and attorney fees are shared, greatly reducing the per-person cost of litigation. Fifth layer: Risk reminder: The statute of limitations for manipulation claims is three years, starting from the date when the investor knows or should have known that his rights have been infringed (usually referring to the date of the administrative punishment announcement). The litigation period is measured in years, and it is necessary to maintain the integrity of evidence and keep communication channels open. When accepting the settlement proposal, it is necessary to calculate the coverage ratio before making a decision.

IV. Practical suggestions and legal basis

The first step is to check the match between the penalty announcement and your own trading window; the second step is to retrieve and fix the complete trading records; the third step is to calculate the detailed loss of investment difference; the fourth step is to evaluate the collective rights protection and the statute of limitations. The main legal basis: Articles 55 and 85 of the Securities Law of the People's Republic of China, Articles 116 and 116 of the Civil Code of the People's Republic of China, and the calculation rules referenced and applied in the "Several Provisions of the Supreme People's Court on the Trial of Civil Compensation Cases for False Statements in the Securities Market"; the specific application shall be subject to the currently effective provisions.

5. Henglue Law Firm's Reminder

The three key points of manipulation claims: Losses from reverse transactions can be claimed according to law, and the punishment decision is a document certifying the illegal act; losses are calculated based on the investment difference plus expenses, and the logic of excluding systemic risks needs to be addressed positively; the three-year statute of limitations starts from the announcement of the punishment, and joint rights protection can dilute costs and speed up demonstrative judgments — the issuance of the punishment notice is the starting signal for rights protection. Those involved in securities manipulation claims can proceed through the following channels:\nFinancial capital and cross-border transactions involving foreign entitiesThe service obtains an overall solution, and in the case of group-based securities disputes, it can be combined with other services.Business and contract disputes in enterprisesFor plates involving the enforcement of compensation payments, you can refer to the relevant information for reference.Creditor's rights and debts, and enforcementFor columns involving special rights protection matters, you can seek advice from usSpecial servicesTeam.

VI. Frequently Asked Questions

Q1: Does the manipulator being fined mean that we will receive compensation?

No. Administrative penalties are collected by the national treasury, and investors need to claim compensation through civil litigation separately. The decision on punishment can be used as evidence to prove the illegal act in civil cases.

Q2: What kind of investors are eligible to claim compensation?

During the manipulation, if there are transactions that go against the direction of the manipulation and result in losses: in the case of a bullish manipulation, those who buy at a high price will suffer losses; in the case of a bearish manipulation, those who sell at a low price will suffer losses. These losses should be verified item by item according to the transaction records.

Q3: How is the loss calculated?

The commonly used investment spread method: the difference between the average purchase price and the benchmark price multiplied by the number of shares, plus the commission, stamp duty, and interest; factors such as systematic risk are excluded and determined by the court based on the evidence.

Q4: Can the manipulator still file a civil claim even after being sentenced to prison?

Yes. Criminal restitution and civil compensation proceed in parallel. The facts determined in the criminal judgment can be directly used in civil cases; the order of compensation shall be handled in accordance with the rules of enforcement procedures.

Q5: When does the statute of limitations start to apply?

Generally, the statute of limitations is three years from the date when the party knows or should have known that their rights have been infringed. In practice, most cases refer to the date when the administrative punishment announcement is disclosed. The party should check the transactions as soon as possible after the announcement of the fine and assert their rights accordingly.

The above answer is based on the judicial practice in Beijing. The adjudication guidelines in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

VII. Relevant public cases (for reference, not handled by our firm)

The following cases are all sourced from the official websites of courts at all levels, judicial authorities, and authoritative media and are publicly available. They are unrelated to the cases handled by our firm and are provided solely for reference in understanding relevant adjudication rules. They do not constitute opinions on specific cases.

[Case Number]The case number has not been made public.
[Trial Court]The Intermediate People's Court of Shenzhen City
[Judicial Summary]Investor Lin ** was harmed by others manipulating the stock price of "Sanfu Outdoor". After the manipulators were fined 9980.34 million yuan by the China Securities Regulatory Commission, the court directly determined the existence of the manipulative behavior based on the administrative punishment decision, and entrusted a third-party institution to estimate the losses, ruling that the investor should be compensated for the investment losses of 157169.56 yuan. This case is a typical financial trial case of the Shenzhen Intermediate Court in 2025, which provides a replicable path for the determination of the causality of civil compensation for market manipulation and the estimation of losses.
[Source]The official website of the China Securities Regulatory Commission published an article titled "A Typical Case Illustrates the Maturing of the Three-Dimensional Accountability System in the Capital Market" (a typical case of financial trials in Shenzhen Intermediate Court in 2025) (2026).

[Case Number]The case number has not been made public.
[Trial Court]Nanjing Intermediate People's Court of Jiangsu Province (Second Instance: Jiangsu Provincial Higher People's Court)
[Judicial Summary]Xu Xiang and Xu Changjiang conspired to manipulate the stock price of Wenfeng Co., Ltd. at a high level for insider trading, and both were convicted of manipulating the securities market in 2017. Investors initiated civil claims based on the findings of the criminal verdict, and the court ruled that they should bear joint and several liability for investors' losses due to their jointly committed manipulative acts. The court also adopted the "constructed true price method" appraisal opinion provided by China Securities Investment and Fund Services Center. In the second instance, 58 new investors were awarded a total of 8.5978 million yuan in compensation, and ST Wenfeng was held jointly liable. In total, 1,017 investors filed lawsuits in the case, with estimated losses totaling approximately 86.74390 million yuan.
[Source]Securities Times reported that "New progress in the case of investors suing Xu Xiang! 58 people received compensation of 8.5977 million yuan" (2025-09).

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials to avoid missing the statutory time limit. →Financial capital legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.