On The Special Representative Litigation System Of Securities Disputes In China

With the vigorous development of the securities market,false statements,insider trading,market manipulation and other securities infringements occur frequently,and the legitimate rights and interests of small and medium-sized investors are facing severe challenges.In this regard,China ’s " Securities Law " was revised and implemented in2020,and a special representative litigation system for securities disputes was creatively proposed to solve the collective action dilemma of small and medium-sized investors and stimulate investors ’ enthusiasm for litigation and confidence in the capital market.However,the special representative litigation system for securities disputes in China has just landed.At this stage,there are still many problems in the theoretical basis and rule design of the system.Therefore,it is imperative to construct a perfect special representative litigation system for securities disputes.The special representative litigation system for securities disputes is characterized by the dominance of investor protection agencies and the rule of " implied accession and express withdrawal," which plays a role in improving litigation efficiency,saving litigation costs and maintaining the trading order of the securities market.In order to deeply explore the theory of special representative litigation system for securities disputes,with the scientific guidance of investor protection theory,public interest litigation theory and litigation responsibility theory,it provides a theoretical basis for realizing the legislative purpose of litigation system and the rationality of litigation filed by insurance institutions.By combing the legislative status quo of the special representative litigation system of securities disputes in China and the first case in China,the main problems are explored : the limited start-up procedure of the special representative litigation of securities disputes,the failure of incentive measures in the litigation activities of insurance institutions,the lack of supervision mechanism and the non-specific rules for the realization of the withdrawal right of small and medium investors.Referring to the status quo of relevant systems in foreign countries and regions,securities disputes are solved through group dispute litigation system.There are many useful experiences in the securities group litigation system in the United States,the German investor demonstration litigation system and the securities group litigation system in Taiwan,which are worthy of our reference.To improve the special representative litigation system of securities disputes in China,it is necessary to improve the litigation initiation procedure,give the insurance institution the initiative to file a lawsuit,and refine the investment service.