Try To Talk About The Securities Group Lawsuit System For Reference And Enlightenment To China

With the rapid development of Chinese economy, many excellent Chinese enterprises start to choose overseas IPO, the United States become the first choice for these enterprises due to its developed capital markers, and a special name owned by these Chinese enterprises listed in the United States——China Concept Stocks. However, since March2011, China Concept Stocks have suffered from securities class actions frequently.This paper aims at illustrating the necessity and significance of introduction of American Security Class Action System through the analysis on American Security Class Action System, problems of China Concept Stocks companies appeared from frequent securities class actions sues. This paper consists of three parts:Chapter Two illustrates the information on securities class actions against China Concept Stocks companies, and analyses the deep reasons; Chapter Two introduces the concept, historical evolution, significant elements, function and weakness of American Security Class Action System; Chapter Three introduces the relevant legislation on security representative litigation in China; Chapter Four analyses the necessity and positive significance of introduction of American Security Class Action System.