Abstract: As a difficult problem in judicial practice, the theory of causation in tort liability by misrepresentation in the securities market has a great significance for the protection of the rights and interests of investors. The current Several Provisions of Civil Compensation Cases Arising from Misrepresentation in the Securities Market by the Supreme People's Court could not solve this problem effectively. To settle the dispute, we should further stipulate the civil liability of hollow misrepresentation, confirm the compensation for damages of undersell securities which revealed by misrepresentation, and consider the intervention causes comprehensively.