On Securities Civil Action

There has been appearance of illegal dealings such as security defraud, misrepresentation, insider trading, and market manipulation, since the beginning of Chinese Stock Market. It is harmful to not only the order of the stock market but also medium and small institutional investors'interests. Therefore, feasible compensation lawsuit mechanism must be built to protect the investors'interests and retrieve their confidence towards the whole market, aiming to drive the Chinese Stock Market forward healthy development. This thesis has explored how to establish an effective securities civil lawsuit system based on the standpoint of medium and small institutional investors. What's more, it has expounded the auxiliary rules of this system deeply.The first part of this thesis introduces the conception and character. It also explores the functions of the securities civil lawsuit. Then, the second part observes the securities civil lawsuit system of other countries and region, especially in America and Taiwan. On the basis of it, the thesis compares and analyses experience of the foreign advanced system. The third part introduces the history of development of our securities civil lawsuit system. Then, taking misrepresentation as an example, this thesis analyses the actualities of our securities civil lawsuit system, which includes compensate methods, statute of limitation, jurisdiction, causal relationship, lawsuit methods and so on. In the end of this thesis, the fourth part makes a concrete study on defect of our representative lawsuit system. On the basis of it, this thesis draws on experience of America and Taiwan. Simultaneously the author mentions the proposals of perfecting our securities civil lawsuit system. In our continental law family, under the circumstance of lacking lawsuit and law enforcement, we can learn Taiwan's mode which is to sue by non-profit organization and encourage the development of securities civil lawsuit. Then, we can construct our securities class action under mature condition.