The Research On The Litigation Mode Of Securities Class Action In China

The securities market of China has been developed as the second largest stock market in the world just behind America.However,many defects such as regulatory vacuum,absence of capital market players,poor market liquidity and lack of transparency in information disclosure are hidden under the potential of development.Securities infringement events such as fraudulent investors,insider trading and market manipulation occur frequently.Meanwhile the existing securities litigation system can just accommodate a limited scale and it can not achieve the goal of investor protection.With the multiply development of social disputes,group litigation as a fresh new system showed up.The appearance of the system greatly broke the traditional "one to one" litigation pattern.The use of this kind of system in securities fields is able to provide effective remedies to the vulnerable victims and impose effective sanctions on offenders through such syndication effect.However,the representative action mode which is designed for most people's disputes has almost never been activated for the reason that lake of operability.Such a direct avoidance attitude can not effectively protect the interests of investors.In view of that,it is urgent and unavoidable to construct and improve the civil litigation system in our country.This article contains four chapters in total.The first chapter illustrates the problems of securities market operation exposed by the insider trading case of Guangda Securities,and points out the significance of perfecting securities civil group litigation.The second chapter starts from the introduction of legislation of Securities civil group litigation mode and its disadvantages.And then through the observation of the judicial system's choices get a further analysis of the reasons.The third chapter introduces two representative extraterritorial systems and comments on the feasibility of their application in our country.The fourth chapter first interprets the draft of the Securities Law promulgated in 2015.On this basis,the author sets forth specific recommendations on how to complete the system of securities group litigation in China.That is to further improve the representative litigation system and learn from the system of group litigation in Taiwan.