The implementation and improvement of the legal liability system under China’s securities law is the fundamental path for realizing the goal of regulating the capital market through the rule of law. The practical experience in the development of the Chinese capital market demonstrate that，from the designation of liabilities to the implementation mechanism，functional obstacles and structural gaps exist in the legal liability system of China’s securities law，resulting in serious gaps between the institutional designs of the laws for the Chinese capital markets and the market realities. Rooted in the current situation of the realities and development trends of the Chinese securities market，this report aims to systematically analyze the discovery mechanism，the penalty basis，the procedural costs，the effectiveness of penalties of illegal acts and the internal connections of the aforementioned mechanisms. By so doing，this report provides legislative proposals for a scientific and rational design and establishment of the legal liability system of China’s securities law in order for China to make full use of functions and mechanisms of the securities market.