On Construction Of The Public Interest Litigation System In Area Of Stock Markets False Statement

In 2013,our country sets the public interest litigation in the new Civil Procedure Law for the first time,which moves forward a big step in the field of public interest litigation. Since the establishment of Amsterdam Stock Exchange in the 17 th century, false statements have been existed and evolved with securities transactions. Securities fraud, which breach of good faith, and people make misrepresentation through false record, misleading statement or significant omission when disclosure of information, improper disclosure of information and other means to seek huge illegal gains, all lead to undermining the principle of open, fairness, and justice of public securities market, distortion of resource allocation mechanism of the securities market, serious damage to the legitimate interests of many investors, and harming the public interest. To regulate the securities market and protect investors’ legitimate rights and interests, the United States established a securities fraud class action, Germany evolved exemplary litigation, Taiwan District of China introduced group litigation. Existing securities laws and regulations of China has prescribed a false statement actors civil liability, but which does not belong to public interest litigation and is of low operability. What’s more, the problems of deficient civil suit for compensation mechanism, inadequate arbitration mechanisms, limited effect and insufficient supervision of the Securities Investor Protection Agency, all add difficulties to implement. Since the consequences of the damage caused by acts of misrepresentation in securities market own the feature of "low amounts but large number", which is difficult to achieve the desired effect just through traditional litigation initiated by the investors whose interests are damaged, and this will further threaten the entire securities market and even the healthy development of our economy and society. However, investors need a more suitable litigation to safeguard their legitimate rights and interests. Public interest litigation system in China is a new form of litigation for resolving disputes caused by violations of the interests of many people, and has the function of safeguarding the public interest, which has positive meaning to be introduced into the stock market to resolve disputes false statement. China’s securities market false statement public interest litigation should combined advanced experience from foreign countries (regions) with China’s reality, and established from the Prosecution of the plaintiff,Filing conditions, Jurisdiction of the case, the Burden of proof and Incentive and restriction mechanism, etc. in order to protect the securities market investors and ensure the healthy development of the securities market, and to safeguard the public interest.