The Study On Group Litigation In Securities Fraud Disputes In China

The securities market usually comes to be known as the barometer of national economy, it plays an important role in the market economy. Along with our securities market increasingly scaled and internationalized, more and more disputes of securities fraud are occurring. Especially a series of scandals successively has outbreak in recent years, and then shareholders all have been chanting requirements to protect investors' rights. The traditional man-to-man mode of lawsuit of China is unable to deal with these disputes of securities fraud. In this case, the legislative departments of our government have formulated relevant regulations. But such regulations are insufficiency and difficulties in enforcing, because legislation exists some weaknesses, such as the short time and the lack of experience, what's more, these disputes of securities fraud are too professional. Therefore, how to construct the group litigation in securities and protect the benefit of the investors economically and equitably have been raised in legislative calendar.In today's academic, there are various viewpoints about how to construct the group litigation. Some academics suggest we should directly introduce American securities class action, but others suggest we should perfect our representative system. While in practice, the Supreme People's Court remains conservative attitude to the group litigation. It may cause that representative litigation is dormant and individual investors'interest protection is not enough.Based on this, beginning with the concepts of the group litigation in securities, we pointed out its four characteristics which were a large number of parties in action, anxious for timely remedy, same interests of been damaged, expansion of the judgment validity; and three affections which were solving the disputes among many persons, pursuing the economy of litigation, achieving fair litigation. We concluded that the group litigation in securities should be the dominant form of solving these disputes of securities fraud. Its functions and advantages are self-evident. Then from the macroscopic and microscopic perspectives, we described the development process of action and current actual operation conditions of our group litigation of securities fraud through the concrete dates and judicial cases. This part served as a point of departure for constructing securities group litigation system. And we analyzed advantages and disadvantages of several typical securities group litigation system in detail, such as Germany and Japan, the United States. Focus was on the class action system in the United States. It served as practical judicial documents for constructing securities group litigation system. At last, we referred to some foreign experience of the group litigation in securities, and grounded on specific situations, judicial environment and native resources, put forward the specific solutions to construct securities group litigation system in China from litigation theories, jurisdiction, prepositional procedure, mode of lawsuit. Besides we suggested that we should construct the supporting systems and alternative solution mechanism of group litigation of securities fraud.